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Myth Buster: Does "The Best Stock" exist?


John Hjorth
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DR [Danmarks Radio] Detektor: Myth Buster [september 25th 2018]: "Does "The Best Stock" exist?".

 

Attached is the report referred to in the article. I understand it - without having read it yet - as an empirical analysis of [Danish] herd behavior with regard to stock investing.

 

I have earlier here on CoBF vented my personal opinion about Mr. Rangvid's position on that he is a proponent of the stance that [Danish] people need to be constrained [by the lawmakers] with regard to position size so that they don't burn themselves.

 

I look forward to the read at a later moment.

The_cost_of_equity_underdiversification_with_Bjarne_Florentsen_Ulf_Nielsson_and_Peter_Raahauge._February_2018_-_20180925.pdf

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DR [Danmarks Radio] Detektor: Myth Buster [september 25th 2018]: "Does "The Best Stock" exist?".

 

Attached is the report referred to in the article. I understand it - without having read it yet - as an empirical analysis of [Danish] herd behavior with regard to stock investing.

 

I have earlier here on CoBF vented my personal opinion about Mr. Rangvid's position on that he is a proponent of the stance that [Danish] people need to be constrained [by the lawmakers] with regard to position size so that they don't burn themselves.

 

I look forward to the read at a later moment.

 

Jumped to the conclusion and did not get it.

 

In other words, the aggregate return of all investors could in principle be increased by 3.1 percentage points

per year by moving from their current underdiversified portfolios to fully-diversified portfolios.

 

If all investors combined own the market how exactly they improve aggregate returns if they exchange paper with each other? I would say aggregate return will be less due to the trading commission.

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s8019,

 

Well, it's all about basic theoretical assumptions and methology of analysis, isen't it? [ : - ) ] - I saw "CAPM" several times while just letting my eyes run over the pages without reading. [ : - ) ]

 

-So, maybe the conclusion may eventually, after reading, end up with "I don't want to understand".

 

- - - o 0 o - - -

 

I'll take notes while reading the piece and post them here. I will read it - herd/crowd behavior is always interesting.

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