Concentrated Stock Strategies

Sources: FactSet Research Systems and Standard & Poor's.

Notes: Full ten-year period AACRs and volatility are included for 365 constituents of the S&P 500 Index as of June 30, 2003. Partial- period average annual compound returns (AACRs) and volatility are included for an additional 134 companies that were removed from the index prior to June 30, 2013 (because of mergers, de-listings, bankruptcies, or other reasons). The grey area highlights stocks with AACRs of -6.7% or below; over a ten-year period, this equates to a cumulative price change of -50%. One constituent is not shown because reported volatility is higher than the maximum value shown on the scale. Median S&P 500 stock represents the point at which median ten-year AACR and median annualized volatility intersect.