Median Long-term Returns of U.S. Stocks and Portfolio Concentration
September 14, 2023 - Equity Premium, Investing Expertise
Are concentrated stock portfolios inherently disadvantaged by lack of diversification? In his June 2023 paper entitled “Underperformance of Concentrated Stock Positions”, Antti Petajisto analyzes rolling future returns for individual U.S. stocks relative to the broad U.S. stock market (market-adjusted) as a way to assess implications of concentrated stock portfolios. He focuses on median return as… Keep Reading