In a simulation of 3,000 portfolios of varying sizes (250, 100, 50, and 15 stocks), the 15-stock portfolios showed significant alpha and outperformance, but also significant underperformance relative to the market, demonstrating that fewer stocks increases both upside and downside volatility.

factualpending

Speaker

Robert Hagstrom

Evidence Quote

“we ran a computer simulation and we did 3,000 portfolios... we saw significant significant uh alpha that was coming out of those”

Source

Warren Buffett Published His Whole Playbook | Robert Hagstrom on Why Only One Tenth of 1% Uses It— Excess Returns
Created: 8/12/2026, 6:12:15 PM

My Notes

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