Do You Suffer from the FAANG Mentality?
“Investors with concentrated portfolios may actually miss out on the very stocks that deliver the best of what the market has to offer.”
How much influence does the top 10% of performing stocks have in the market? Dimensional Fund Advisors reviews the impact with the FAANG (Facebook, Amazon, Apple, Netflix, Google) mentality. If you remain focused on only the top performers, you may miss out on all that diversification can offer, including more dependable outcomes over the long term.