Read? How Concentration Affects Portfolio Performance
Vanguard recently came out with a piece that provides investors with additional data to bring to this conversation.
They calculated the returns of Russell 3000 stocks over the last 30 years and found that 47% of stocks were unprofitable investments and almost 30% lost more than half their value. They also found, and this is the big one, that 7% of stocks had cumulative returns over 1,000%.
Hmm .. Peter Lynch is proved right!
Read? Peter Lynch on His Secret to Superior Returns (2)
Hmm ... long term retail investors should be doing ...
Read? Portfolio Management Concentrate (Verb) or Concentrate (Noun) - Refresh...
