Geoff Gannon August 11, 2019 Gannon on Investing

How Safe Can You Really Make a 5-Stock Portfolio?

By GEOFF GANNON Investors often overestimate the reduction in volatility they will get from diversification and underestimate the reduction in volatility they will get from simply owning stocks with a beta less than 1.   Over the last 10-11 years, I’ve owned 5 or fewer stocks in about 90%+ of all quarters. My portfolio’s returns have had a lower standard deviation in terms of returns than the S&P 500. And in terms of just “downside volatility” – which is what most investors mean when they...

This content is for Regular Membership members only. Please login or register to view our content.
Log In Register
Share: