An interesting study on the much-debated concentrated vs. other strategies. The empirical study concludes that there is no evidence that the concentrated strategy outperforms while the risks go up significantly.
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When one looks at all possible cases in a universe of stock pickers the stock pickers who have very few stocks in the portfolio would show up at both ends of extremely low returns and extremely high returns.
The stock pickers who have a diversified portfolio would hug the index return or at least remain closer to the index. Thatâs my understanding and shouldnât it naturally follow the portfolio theory and the laws of statistics aka central limit theorem.
So did I wrongly understand the debate or is there something more to it?
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Equity Market Outlook Jan 2025
https://invest.nipponindiaim.com/uploadmarketdoc/Fixed_Income_Market_Outlook%20_January_2025.pdf
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Good piece on commodity super cycles.
Some take aways :
China consumed more steel in first 20 yrs of this century than US did in the entire 20 th century.
The next commodity super cycle will hinge on Electrification, Energy transition and Artificial intelligence.
Steel makers are focusing more on flat steel ( used in automotive, industrial) than long steel ( used in construction) .( Indian companies with more focus on flat steel is expected to deliver better profits as per analysts )
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Hindenburg Research announced that it will be shutting down
Hereâs a personal note from the founder:
https://hindenburgresearch.com/gratitude/
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