The “super stocks”  over this period “…have all undergone at least one near-death experience.” according to David Salem.   “Balchem shows the patience, grit and good luck it takes for a company to turn into a superstock.”

“The stock didn’t attract a single major institutional holder until 1999, even though it had returned an average of 21.3% annually over the previous decade.

“Investment professionals often ridicule index funds-those autopilot portfolios that mechanically own every stock in a market benchmark – for holding overpriced stocks and riding them all the way down. But one of the unsung virtues of index funds is that, by design they cling to their holding through even the worst downdrafts.”

His summary of the article is that most people are better off with index funds. “In the long term, capturing the full upward sweep of a super-stock requires enduring several near-death experiences along the way.”

The article did not attempt to discuss the differences among index funds. The differences are important in developing a portfolio.  Each index may include different companies or a different mix of companies.  Size, industry, location, performance are examples of differences.  The type and portion of companies can vary.   The expenses of each fund also vary.  Very few individuals can outperform the market.  Select funds that are best for you.