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The Risk Of Concentrated Portfolios

TedTed
in Off-Topic
FYI: J.P. Morgan is out with a really interesting study that highlights the risks inherent with investing in a concentrated stock portfolio. This is an important part of investing that is often overlooked. We’re always searching for the next Apple, which had you invested $5,000 at the IPO in 1980 would be worth ~$1,300,000 today (a 26,000% return). However, we fail to mention that for every Apple, there are many more WorldCom’s.

Without any further adieu, let’s get into some of J.P. Morgan’s findings.

Regards,
Ted
http://theirrelevantinvestor.tumblr.com/post/97305810633/the-risk-of-concentrated-portfolios

Comments

  • BobCBobC
    But there are a good number of talented fund managers who successfully handle concentrated portfolios of 30-60 positions. For sure, I would not attempt to do this on my own.
  • VintageFreakVintageFreak
    Bah! I just buy many concentrated growth portfolios.

    Besides, do I need JP Morgan to tell me investing in 1 stock has higher risk than investing in 10? I don't need to hear this to invest in anyone's index hugging active managed fund with 200 stocks. Their "research" is as sophisticated as searching TWICE on google (searching once would simply mean "search").

    "Really interesting". The phrase that is the epitome of bullshit. Hey look! I have something interesting. My research shows if I don't walk backwards I have only a 1 in 100 chance of tripping.
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