Portfolio concentration by super-winners is a natural and healthy feature of equity markets; the top 10% of stocks are responsible for the excess returns of equities over bonds, and avoiding concentration-heavy stocks will prevent an investor from capturing market returns.
causalpending
Speaker
Aswath DamodaranEvidence Quote
“Hendrik Bessembinder did a really famous study on what percentage of stocks in the US account for that extra premium that you earn on stocks over bonds. It's like the top 10% of stocks are really the reason you get that.”
Source
Aswath Damodaran: I Am More Cautious Than Ever— The Master Investor Podcast with Wilfred FrostCreated: 8/12/2026, 6:41:25 PM
My Notes
Loading notes...