You are here


An investment strategy that consistently underperforms

When a stock that you own becomes the largest in the market, instead of a reason to continue to hold, it is actually a sell signal

Apple's experience mirrors the performance of the largest companies in the past. Whenever a stock has become the biggest company in the world, it is by definition over-owned, over-analysed, and over-valued, setting itself up for future under- performance.

THERE'S a popular investment strategy that consistently underperforms the market. You are unknowingly likely to be allocating part of your investment portfolio to this strategy, whether directly or indirectly by owning some of the many funds that follow it.

The latest "stock pick" of this...

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to