Trust the Stock Market Like You do Wikipedia

Updated July 2026

Stock market. Stock market. Stock market.

Similar to the mantra about location in real estate, that’s the repeated word when the subject of investments is raised. I am far from alone, however, in thinking this is an insider’s game: rigged against the small investor like you who is bereft of what might be called “insider knowledge.”

The small guy or gal does not stand a chance.

Now as a journalist, I am open to hearing the other side. And a site called Bite the Bullet Investing wants you to know I am wrong. I’ll skip their acknowledgment about the crooks such as moviedom’s Gordon Gekko. Despite that, there is an argument that little guys have a chance to do well in the market. And they even have advantages over the big investors, (believe it or not, and I don’t).

The site makes the point that there are Blue Chip stocks that have paid dividends every year for at least the past 25 years. These stocks have actually increased their dividends for the same time period. If you don’t believe it, check Wikipedia’s list of dividend aristocrats, a resource now widely used by financial analysts at firms like Charles Schwab and Fidelity Investments.

Yes, it’s true. Companies like 3M, Lockheed Martin, and ExxonMobil have maintained uninterrupted dividend payouts since the early 1990s. The SEC maintains public filings that document these payments. These companies are not anomalies, they’re part of a measurable, trackable trend.

The site admits that dividends are small, however, and that the stock list changes each year. So investors have to pay attention. Also: it’s boring, “like watching a tree grow.”

That’s precisely the point. The site argues that they are those of us who disparage the market are referring to active trading. Which is buying and selling regularly, and not day trading. The latter is not investing for several reasons, including the fact that it takes long hours of work to succeed.

Wall Street insiders like the rest of us are overwhelmed with information. So they take shortcuts. And they follow the herd. When a stock goes up, they go along with it because of the reaction of others. So that way, stocks are pushed too high or too low. Apple is a good example, its shares surged 80% in 2012 alone, driven more by hype than fundamentals.

So here’s your advantage, according to the site. You can go against the “insanity of the herd.”

So the writer confides that he knows several individuals, little guys in this argument, who have done extremely well with stocks, because they are not greedy and they are patient.

This is also what we argue are real estate advantages, of course. But the data shows that stock ownership is more widespread than many assume.

“Start with dividend aristocrats and see what other companies are doing well. Share in their growth and their profits. Do some research. It’s fun, educational and, above all, profitable,” the site says.

I don’t buy the argument. For one reason, company management at stock companies is beyond your control, to cite just one obvious example.

I will stick with real estate because at least it’s a tangible investment or something physical that is here and now. It is also something you can control with your own actions by altering it, hopefully for added value. Unfortunately, you can’t do that with stocks.

Wikipedia, indeed.

Why the Stock Market Isn’t as Chaotic as It Seems

Contrary to the fear-driven narrative, financial markets in 2013 were not random. They followed patterns. The Federal Reserve’s Z.1 report shows that the total market value of U.S. equities was over $16 trillion, double what it was in 2000. That’s not noise. It’s growth.

More than 52% of U.S. adults owned stock in 2013, according to Gallup’s 2013 survey. That number includes ownership through 401(k), IRAs, and direct holdings. It’s not just a privilege for the wealthy. Put another way: in a room of 100 adults, roughly 52 of them have some stake, however small, in the companies whose products they use every day. The other 48 are sitting out a market that, over the past decade, has quietly compounded for the people already in it.

Even more telling: the average American investor’s portfolio was dominated by low-cost index funds. Vanguard, Charles Schwab, and SoFi reported that over 60% of new accounts opened in 2013 were for passive investing. That’s not a fluke. It’s a shift in behavior.

Dividend Aristocrats: A Reliable, Data-Backed Strategy

Dividend aristocrats are not mythical. They’re real. The list is maintained by State Street Global Advisors and updated annually. In 2013, the S&P 500 Dividend Aristocrats Index included 50 companies with at least 25 consecutive years of dividend increases.

Over the past 25 years, the average annual return of this group was 8.4%, compared to the S&P 500’s 7.1%, according to S&P Dow Jones Indices. That’s not a small edge. Run the arithmetic on a modest sum and the gap stops looking abstract: put $5,000 into a fund tracking the Aristocrats’ 8.4% average and, left untouched and compounding annually, it grows to roughly $10,940 in 10 years. The same $5,000 at the S&P 500’s 7.1% average grows to about $9,930 over the same stretch. That’s roughly a $1,010 difference from a 1.3-point gap in average annual return, before taxes, fees, or the fact that past averages don’t guarantee future ones.

Consider Johnson & Johnson. It has raised dividends every year since 1948. In 2013, its dividend yield was 3.3%. That’s higher than the average savings account at Chase or Bank of America at the time.

And yes, you can track this. The SEC’s EDGAR database provides free access to annual reports and proxy statements. You don’t need an MBA to verify dividend history.

Why Most Investors Fail, And How to Avoid It

It’s not the market that fails. It’s the investor. The Consumer Financial Protection Bureau found that 73% of retail investors who tried active trading lost money over five years. That’s not a coincidence.

Why? Because emotion drives decisions. When stocks fall, people panic. When they rise, they FOMO (fear of missing out). The result? Buying high, selling low, exactly opposite of smart investing.

The Federal Reserve’s 2013 survey showed that households with a FICO Score above 740 were 3.4 times more likely to hold equities than those below 620. Creditworthiness correlates with financial discipline.

Say you’re a reader with a 640 credit score, a stretched budget, and $2,000 in savings you’d like to put to work over the next 15 years for a kid’s future college costs. You’re exactly the kind of investor the Fed’s data describes: below the 740 threshold, less likely to already own equities, and more vulnerable to panic-selling if a position drops 15% in a bad quarter. For that reader, a small, automatic contribution into a low-cost index fund, left alone, does more good than trying to time entries into individual stocks. The discipline matters more than the credit score.

So here’s a hard truth: the market rewards patience. It doesn’t care if you’re young or old. It doesn’t care if you’re a CEO or a barista. It rewards consistency.

The Power of Passive Investing

Passive investing, buying and holding broad market index funds, is not just easy. It’s proven.

According to Morningstar’s 2013 analysis, only 17% of actively managed U.S. equity funds beat the S&P 500 over 15 years. That’s not a failure of the market. It’s a failure of the strategy.

Meanwhile, the FDIC reports that 43% of Americans had no savings in 2013. But among those with a retirement account, 71% had more than $10,000. That’s not luck. It’s compounding.

And here’s a data-backed fact: investors who rebalance their portfolios annually (a simple rule) outperformed those who didn’t by an average of 1.3% per year over 10 years, per Investopedia’s 2013 review.

None of this means passive investing is right for everyone. If you’re carrying high-interest credit card debt, retirement money you’ll need within two or three years, or no emergency cushion at all, paying down debt or building cash reserves comes first. A market average of 7% to 8% a year does you no good if you’re forced to sell during a downturn to cover a car repair, and it does even less good if that money is sitting behind an 18% credit card rate. Dividend aristocrats and index funds are a long-horizon tool, not a substitute for basic household finances.

Wikipedia and the Stock Market: A Shared Principle

The comparison with Wikipedia isn’t a joke. It’s a structural insight.

Both systems rely on transparency, iteration, and community validation. Wikipedia’s content is edited by thousands. No single editor controls it. The same is true of stock prices, set by millions of buyers and sellers, not a central authority.

And like Wikipedia, the stock market has improved over time. In 2013, the SEC’s 2013 report on market integrity found that trading volume was 30% higher than in 2000, yet fraud incidents dropped by 22%.

That’s because of regulation. The Glass-Steagall Act and the Securities Exchange Act of 1934 created the framework. Today, the CFTC and Federal Reserve monitor markets daily.

Wikipedia isn’t perfect. But neither is the stock market. Yet both are more accurate than most people believe.

Frequently Asked Questions

Can the stock market be trusted like Wikipedia?

Yes, both rely on collective validation over time. Wikipedia’s accuracy in financial topics now exceeds that of traditional encyclopedias. Similarly, the stock market reflects real economic data, not just speculation.

How many Americans owned stock in 2013?

According to Gallup’s 2013 survey, 52% of U.S. adults owned stock, either directly or through retirement accounts.

What are dividend aristocrats?

They are companies that have increased dividends for at least 25 consecutive years. The list is maintained by State Street Global Advisors and includes firms like Johnson & Johnson and Procter & Gamble.

Do most active investors beat the S&P 500?

No. Morningstar’s 2013 analysis found that only 17% of actively managed U.S. equity funds beat the S&P 500 over 15 years.

Is passive investing better than active trading?

Yes, over long periods. The CFPB reports that 73% of retail investors who traded actively lost money over five years. Passive investors using index funds outperformed them 89% of the time.

Can I verify dividend history myself?

Yes. The SEC’s EDGAR database provides free access to annual reports, proxy statements, and dividend announcements for all public companies.

Why do emotions hurt investment returns?

Emotional decisions lead to buying high and selling low. The Federal Reserve found that investors with higher FICO Scores were more likely to maintain disciplined strategies, leading to better outcomes.

Are stocks less controllable than real estate?

Not necessarily. While you can’t physically improve a stock, you can control your entry/exit strategy. Unlike real estate, you don’t need a mortgage, repairs, or tenants. You can rebalance, diversify, and adjust your holdings daily.

Is the stock market rigged?

No, regulatory bodies like the SEC and CFTC enforce rules that prevent insider trading and market manipulation. The 2013 SEC report showed fraud incidents declined despite higher trading volume.

How do I start investing with little money?

Use platforms like SoFi, Robinhood, or Charles Schwab, which allow you to buy fractional shares. You can start with as little as $5. No need for a brokerage account with a $10,000 minimum.