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Investing in the right single stock always outperforms the index. But risk adjusted returns may not be better than a diversified portfolio, Microsoft could also
by t0mas88 6y ago
Investing in the right single stock always outperforms the index. But risk adjusted returns may not be better than a diversified portfolio, Microsoft could also have dropped due to some scandal whereas the downside risk of a balanced portfolio is much smaller.
- sharkweek 6y agoAbsolutely, and him and I both know this, but... I still like to remind him of it (only because we're close enough to prod each other like this).