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 Damodaran

Evidence 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 EverThe Master Investor Podcast with Wilfred Frost
Created: 8/12/2026, 6:41:25 PM

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