Too Many Cooks Spoil the Profits: Investment Club Performance

Brad M. Barber, Terrance Odean
2000 Financial analysts journal  
The average club tilted its common stock investment toward high-beta, small-cap growth stocks and turned over 65 percent of its portfolio annually. The average club lagged the performance of a broad-based market index and the performance of individual investors. Moreover, 60 percent of the clubs underperformed the index.
doi:10.2469/faj.v56.n1.2326 fatcat:3ekee5y36bbinbaq5vq7s4yqa4