This is a two part series on uncertainty and luck in the stock market. Read part one here! (On hindsight, this post should have been part one. But we live and learn.)

In part one, I used an example of one of my stocks shooting up after I bought it. Guess what? A few days after that post, another of my ‘undervalued’ stock shot up! This leaves one more ‘undervalued’ stock that has yet to move anywhere. Maybe this post will do it.

Part 2 covers some statistics on stock market returns. Don’t worry, not much math here.

We often hear statistics like ‘The average return of the STI over a long period is 7% per year’ or ‘This fund has outperformed the index benchmark by 5% per year since inception’

These statements are true, but the reality is often different. Take a