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Anna Bella

@liuzhis

Why does Duan Yongping say that buying the S&P 500 always makes money? He once said that if someday his children don’t understand investing, he would simply have them buy the S&P 500 or Berkshire Hathaway. The answer is in 200 years of history. If you held $1 in cash in 1802, its purchasing power today would be just $0.05. But if you had invested that $1 in the stock market, thanks to compound growth, it would be worth over $1 million today. The S&P 500’s real power is that it is constantly renewing itself: Weak, unprofitable companies are removed. Only the strongest — like Apple, Nvidia, Microsoft — remain. U.S. companies prioritize shareholders through buybacks and dividends. So when you buy the S&P 500, you don’t need to pick stocks or time the market. It automatically selects the best companies and eliminates the worst. You’re not buying stocks —you’re buying human productivity and long-term economic growth.
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