Neeraj Khemlani

I read this in 2014, I believe, and this really stuck with me.

There was a research report from JP Morgan called The Agony and the Ecstasy of Stock Picking.

And they said 40% of all stocks in the Russell 3000 experience a catastrophic decline.

Meaning a 70% decline from which they never come back.

So I think what Josh said is so right that you have unique information that the average investor does not.

And I think the reason why it's so hard, I mean, for a million reasons to stick with the winner is because, A, you know that at some point you will get cut in half.

It's just part of the deal.

None of these stocks go up 100x in a straight line.

And you don't know which of those are going to come back.

And so if you double your money, that's a great investment.

It's a great trade, whatever you want to call it.

I better not be part of that 40%.

Let me just take my money and just leave.

So for every fast and all, there's thousands of companies that do go to zero.

But what about in the modern economy?

Because not a lot of companies have tangible assets like they used to.

It's not.

But what about the consistency of the returns of tangible assets or whatever you're using?

Because any company can have a good couple of quarters or whatever, but what do you look for consistent-wise?

Guys, we are looking at chart, a small percent of outlier companies.