Doesn't sound like you're allowing for negative return in that calculation? Would it not be closer to 70%?If you had restricted 20% of your portfolio to financial services, your return since 2001 would have been 88% (80% of 110% return on ISEQ General)
You had me struggling for a while there Boss but yes your math is correct. Fascinating to read that list of shares from 2001. I remember them well. And absolutely astounding that so many have tanked. I thought the banks were a once in a lifetime freak but Elan, Riverdeep, Iona. If ever there was a cautionary tale against a concentrated portfolio, this is it.If this is correct, then 66% of people who pick 10 shares would not pick one of the 4% stars. If my 20% stars is correct, 90% of 10 stock portfolios would include at least one star.
Fascinating to read that list of shares from 2001. I remember them well. And absolutely astounding that so many have tanked.
You had me struggling for a while there Boss but yes your math is correct. Fascinating to read that list of shares from 2001. I remember them well. And absolutely astounding that so many have tanked. I thought the banks were a once in a lifetime freak but Elan, Riverdeep, Iona. If ever there was a cautionary tale against a concentrated portfolio, this is it.
It was very surprising for me too. I would love to get the data on all shares in Ireland which had a market cap in excess of €1 billion to see how they fared.
Here are today's top companies
CRH €27B
Ryanair: €18B
Kerry Group €16B
AIB €13B
BoI €8B
Paddy Power: €8B
Smurfit Kappa: €8B
Kingspan: €7B
Glanbia: €5B
Tullow Oil: €4B
Cairn Homes €1.4B
Dalata : €1.2B
Irish Continental :€1 B
Aryzta €1B
Will 5 of these crash to zero? Two or three probably will. And, there could be another banking crisis which takes out AIB and BoI.
While it certainly true that the bulk of stock market gains come from a small minority of stocks, I would be inclined to treat the Bessembinder paper with some caution.So, is Besseminder correct?
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