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Sound Advice: October 8, 2025

How many investors have outperformed the stock market over the last 20 years?

Very few investors have outperformed the stock market over the past 20 years.  Data shows that only about 6% to 8% of actively managed equity funds in the U.S. beat the market over this period, with the vast majority—over 90%—underperforming the S&P 500 or equivalent broad indexes.

Percentage of Investors Beating the Market

  • Only 8% of equity funds investing in large companies managed to outperform the market over a recent 20-year span.
  • About 94% of all domestic funds underperformed the S&P 1500 Composite Index from 2005-2024.
  • Over shorter timeframes (5-10 years), typically fewer than 15-20% of fund managers beat the S&P 500, and performance persistence is rare.

Why It Is Rare

  • The S&P 500’s high returns have proven immensely difficult to beat, especially as indexing has become popular and markets have become more efficient.
  • Although many managers attempt to outperform, most are outpaced by index funds, especially after fees are included.
  • Outperformance is more likely to be found in certain specialized or non-U.S. sectors, but remains rare over long periods.

Notable Exceptions

  • Only a handful of legendary investors—such as Warren Buffett, Peter Lynch (in his era), and a few star managers—consistently beat the market over long periods, but such examples are exceedingly uncommon today.

Summary Table

Period

% Outperforming Funds

Past 10 Years

15%

Past 20 Years

6–8%

The overwhelming evidence suggests that beating the stock market over 20 years is extremely rare, and only a small minority of investors or funds manage to do so on a consistent, risk, risk-adjusted basis. 

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