46 firms accounted for half the wealth generated by the stock market over the past 100 years, researchers say

In recent years, stock market observers have noticed that a small group of mega-sized technology stocks, nicknamed the " Magnificent Seven ," have driven an outsized portion of the return in the broad stock market. A decade ago, it was FANGs (Facebook, Amazon, Netflix and Google — sometimes, Apple too) leading the charge. These cadres tend to make headlines because they go against the idea that the stock market is a rising tide that, over time, lifts all boats. In fact, a "thin" market — one in which a few top stocks advance while the bulk of the market retreats — is often considered a signal for a possible pullback . But over the past century, a few stocks driving the bulk of returns is the rule, not the exception, according to research from Hendrik Bessembinder, a professor at the Carey School of Business at Arizona State University. From 1926 through 2025, while the weighted average return among nearly 30,000 stocks was more than 30,000%, the median stock returned -6.9%, he found. All in all, he found that over the past 100 years, just 46 firms accounted for half of the wealth created by the stock market. What does that mean for the average investor? It depends how you interpret the data, Bessembinder tells CNBC Make It. While some investors might see the possibility for enormous wealth by investing in the right stocks, others might see picking winners as finding needles in a haystack, he says. …