~ Joel Tillinghast, Big Money Thinks Small, p. 60
Feb 21, 2023
Joel Tillinghast: avoid investing in the single largest stock in the S&P 500
Familiarity can work against investors. If you continuously invested in the single largest S&P 500 stock by market value between 1972 and 2016, your compound returns would have been less than 4 percent, while the index earned over 10 percent. A smiliar but smaller effect was seen with the ten largest S&P 500 stocks.
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