AgPa #13: Concentrated Stock Markets (4/7)
Extreme Stock Market Performers, Part III: What are their Observable Characteristics? (2020)
Hendrik Bessembinder
SSRN Working Paper, URL
The fourth of seven AGNOSTIC Papers about the extreme concentration in stock markets. This one goes one step further and examines the fundamental characteristics of big winners ex-post. The main insight is quite intuitive: outstanding stock performance usually comes with outstanding fundamental performance of the underlying company…
- Big winners grow faster, are more profitable, and have smaller drawdowns
- Observable fundamentals still explain relatively little