Fun with Math
I notice some ads in our sidebars, and I must quibble with the assumptions. Forgive me, it's the only Foolish thing to do.
"10,000 in Wal-Mart in 1970..." Doesn't sound like much, right? But we're talking about today's dollars. $10 K in 1970 dollars = $53,000 in today's dollars. Back then, the inflation adjusted median income was about $35 K per year.
Considering that median income today is around $43,000 per household, you should ask yourself: are you likely to put an amount equivalent to 125% of household income into a single stock? In 1970, with median household income even lower, (you can see that a $10,000 investment in 1970 would have represented an even bigger -- you might say enormous -- sum of money for the median U.S. household.
Investing in winners can be great, but lets get real about the sums. I'll bet my finger-painting smock that most Fools couldn't afford to put 125% of their household income into a single stock, and it wouldn't be a smart move even if they could. Pick the wrong one, and byebye nestegg.