
Markku Kurtti – Diversification is a Negatively Priced Lunch (S7E7)
Flirting with Models
Unlocking the Diversification Premium
Exploring the concept of diversification premium within stock diversification, this chapter discusses its ties to geometric returns, firm-specific risk costs, and the benefits of signal-to-noise ratio enhancement in portfolio construction. It challenges traditional beliefs on portfolio diversification numbers, emphasizing the importance of diversification for long-term success, compounding wealth, and optimizing returns for active stock pickers.
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