INVESTMENT ADVISER | ISSUE 09 2024 39
Even staying in the top 100 is rare . An average of 15 companies per year managed to be in the top 100 for two consecutive years .
The odds of a repeat appearance in the top-10 or top-100 two or three years down the line are similarly low .
Number of companies that were top-ten one year and also the next .
Number of companies that were top-100 one year and also the next .
Past performance is not a guide to the future and may not be repeated . Data 2005-2023 based on constituents of MSCI USA Index . MSCI USA had between 471 and 568 constituents each year , average 532 . Source : LSEG Datastream , MSCI and Schroders .
It ’ s not even that they still do well but drop back from the glory stakes . In 14 of those 18 years , top 10 performers dropped to the bottom half of the performance rankings in the next year , on average . They were more likely to be among the worst performing stocks than the better ones . Their typical drop in ranking has been savage .
A TOP PERFORMER ONE YEAR IS OFTEN A POOR PERFORMER THE YEAR AFTER Average ranking change across teh top-ten from the previous year
Past performance is not a guide to the future and may not be repeated . Data 2005-2023 based on constituents of MSCI USA Index . MSCI USA had between 471 and 568 constituents each year , average 532 . Source : LSEG Datastream , MSCI and Schroders .