The Agony & the Ecstasy 3.0: an update on our concentrated stock research for high net worth families

Posted on March 28, 2021 by Florian Buschek

This from Cembalest Haldeman (JP Morgan) comes with some eyepopping data:

Furthermore, more than 40% of all companies that were ever in the Russell 3000 Index experienced a “catastrophic stock price loss”, which we define as a 70% decline in price from peak levels which is not recovered

There are certainly lots of ways to blow up, not many ways to win. Those winners win big though.

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Scott Shuda

As with the family offices, the rich get richer, and the rest…

[…] in returns, a few huge winners and many losers/mediocre stocks, is well know as I have discussed here. It is why indexing works so well. You are guaranteed to own the winners and the losers will […]

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