Higher Returns on Fewer Stocks: Vanguard Debunks “Best Ideas” Portfolio Philosophy
March 29, 2019 at 08:30 AM EDT
A recent study by a team at Vanguard contradicts the idea adopted by many investors and financial professionals that “broadly diversified portfolios are inferior to concentrated portfolios made up of a manager’s ‘best ideas.’ “ While the underlying premise might make sense—that performance of a...