From: John Conover <john@email.johncon.com>
Subject: Re: Optimal Stock Market Strategy Re: SGP versus Switching Campaigns; wisest strategy
Date: 4 May 1999 10:29:31 -0000
Archimedes Plutonium writes:
> In article <7gkugm$d6t$1@dartvax.dartmouth.edu>
> Archimedes.Plutonium@dartmouth.edu (Archimedes Plutonium) writes:
>
> Not the poorest obviously since a manager with only 2 stocks that
> takes a beating is worse off than a diverse portfolio.
>
> The point I am making is that the more diverse a portfolio is, the
> more it prohibits superior performance.
>
> The managers with the superior performance are the ones who
> concentrate on a few companies. Those that diversify, is open admission
> of lack of confidence and skill in picking, and a diversification is
> defensive and passive, not of a mind-cast to perform superior results.
>
Hi Archimedes. Since the entire history of the daily closes for all
stocks in the US for the century is available on CD, why not use that
data to simulate a diverse portfolio vs. a portfolio with a two stocks
in it and see which portfolio wins?
That would settle the question.
John
--
John Conover, john@email.johncon.com, http://www.johncon.com/