Bracket Busters and Stock Flops: The Risky Game of Picking Winners

March Madness is here, and just like filling out a bracket, picking individual stocks can feel like a thrilling gamble. But the odds of winning big are slim. In fact, history shows that most stock picks, like most brackets, end up busted.

Many investors can’t resist chasing big wins, even though diversification is a smarter play. One economist, Hendrik Bessembinder, analyzed the returns of nearly a century of stock performance. Let’s compare what he found to March Madness history and uncover what March Madness can teach us about investing!

Here’s some of what we discuss in this episode:

🏆A perfect bracket has never happened

📉 The odds of sustainable success are slim

🏀The most familiar choice doesn’t mean victory

📊The importance of diversification in investments

 

Get in touch with the Peterson Financial team: https://petersonfg.com/