Efficient Markets

Should I Own a Concentrated Portfolio of Stocks?


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Hello,

On today's episode, I talk about concentrated stock portfolios.  This past year has been the year of the "meme" stock and investors have been piling into the market.  You might wonder, should I pick individual stocks to get wealthy in the stock market?

I explore some data from DFA that looks at the cost of missing out on the biggest winners in the global stock market.  Yes, owning a concentrated portfolio is a good way to out-perform, but you stand the same chance to dramatically under-perform a simple, broadly diversified portfolio of index funds.

Detailed notes, charts, and links can be found on my blog at www.walhoutfinancial.ca/podcast

Thanks for listening!

Mark 

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Efficient MarketsBy Mark Walhout