- 2 years ago, I created 5 portfolios of 30 stocks each, randomly chosen from the Russell 3000 and equally weighted.
- I ran these portfolios on the Folio Institutional platform and wanted to save these snapshots of their performance before closing this experiment.
- Surprisingly, all five randomly constructed portfolios happened to outperform the Russell 3000, but most likely because we started when microcaps were oversold.
- Two lessons from this experiment are: 1.) 30 stocks provide enough diversification, and 2.) Buy obscure stocks when everyone's panicking.
For further details see:
My Random Stock Portfolio Experiment, After 2 Years Live Performance