As an investor, is being “good enough” good enough? The author of today’s article compares the returns of two hypothetical portfolios with the same 60/40 stock/bond mix and identical asset class allocations – the only difference between the two portfolios is their specific holdings, with Portfolio 1 holding the best performing funds over the last ten years while the funds in Portfolio 2 are mostly random selections. How does the performance of the “good enough” portfolio compare to that of the “optimal” portfolio – and what is the lesson for investors? CLICK HERE to find out.
The Case For The Good Enough Portfolio
Tags:60/40 Stock/BondAsset Class AllocationsBest Performing FundsbondsFundsInvestInvestmentInvestorInvestor LessonsOptimal PortfolioportfolioPortfolio 2ReturnSelectionsStock Portfoliostocks