Why Do Individual Investors Hold Under-Diversified Portfolios?
By W. Goetzmann, Alok Kumar. 2005
145 citations recorded by the source corpus.
View Paper: https://www.semanticscholar.org/paper/609a3f0bcd44c7ab46bc9a2c7a9614e9f4d4b346
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
- David A. Hirshleifer
- Alok Kumar
- Danling Jiang
- Clemens Sialm
- Bing Han
- Amit Seru
- Sheridan Titman
- Noah Stoffman
Citations in the corpus
- Portfolio Concentration and the Performance of Individual Investors (2008, background): “consistent with Goetzmann and Kumar (2005), who argue that portfolio concentration reduces welfare.”
- Learning By Trading (2010, background): “Individual investors have been shown to trade too much (Odean 1999, Barber and Odean 2001), hold their employer’s stock in their retirement funds (Benartzi 2001), and hold undiversified portfolios (Goetzmann and Kumar 2005).”
- Financial literacy and portfolio diversification (2010, background): “Investors hold undiversified portfolios made up of a limited number of assets (Goetzmann and Kumar 2001, 2005, Guiso et al. 2002).”
- Idiosyncratic Risk and the Cross-Section of Expected Stock Returns (2009, unknown): “For instance, Goetzmann and Kumar (2004) show that, based on a sample of more than 62,000 household investors in the period of 1991–1996, more than 25% of the investor portfolios contain only one stock, over half of the investor portfolios contain no more than three stocks, and less than 10% of the ”
- Corporate Financial Distress: An Empirical Analysis of Distress Risk (2007, background): “The reasons for under-diversification are analyzed by Levy (1978), Merton (1987), Malkiel and Xu (2006), Goetzmann and Kumar (2007) to some extent.”
- Fear of the Unknown: Familiarity and Economic Decisions (2007, result): “6 stocks; see also Goetzmann and Kumar (2006). This phenomenon is in sharp contrast to the recommendation of traditional portfolio theory, and especially puzzling prior to the rise of mutual funds in recent decades.”
- What Drives Stock Price Movements (2013, unknown): “, Goetzmann and Kumar (2005) and Statman (2004)).”