Too Many Cooks Spoil the Profits: Investment Club Performance

Author: Brad Barber & Terrance Odean

"We analyze the common stock investment performance of 166 investment clubs using account data from a large discount brokerage firm from February 1991 through January 1997. The average club tilts its common stock investment toward high-beta, small, growth stocks, and turns over 65 percent of its portfolio annually. The average club lagged the performance of a broad-based market index by over three percent per year..."

Investment Club Performance Financial Analysts’ Journal - January/February 2000

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