In this episode of Excess Returns, we sit down with Sam Ro to revisit his widely read post “10 Stock Market Truths” and explore how each principle holds up in today’s market. From the long game of investing to short-term risks, valuations, AI, and earnings, Sam shares a timeless framework for navigating markets and separating noise from signal.

Topics covered:
• Why the long game is undefeated
• Short-term volatility and how to prepare for it
• The myth of average returns
• Asymmetric upside in markets and stocks
• AI as both opportunity and risk
• Earnings as the ultimate driver of stock prices
• Why valuations don’t predict the next year
• The role of uncertainty and hidden risks
• Turnover and evolution within the stock market
• Why the stock market isn’t the economy

Timestamps:
00:00 Average returns are misleading
02:00 Introducing Sam Ro
02:15 Truth #1: The long game is undefeated
08:40 Truth #2: You can get smoked in the short term
14:20 Do markets have a government backstop?
18:00 Truth #3: The myth of average returns
23:00 Truth #4: Asymmetric upside
28:00 AI as macro and micro driver
33:00 Truth #5: Earnings drive stock prices
36:30 Truth #6: Valuations won’t tell you much about next year
51:40 Truth #7: There will always be something to worry about
55:20 Truth #8: The destabilizing risks are the ones people aren’t talking about
01:05:00 Truth #9: There’s a lot of turnover in markets
01:11:00 Truth #10: The stock market isn’t the economy
01:20:00 Closing thoughts