Ritholtz Ranks What Helps or Hurts Investment Returns

In a recent Bloomberg article, columnist Barry Ritholtz ranks those factors that he believes drive investment portfolio returns. “An unexpected challenge in performing this exercise,” writes Ritholtz, is a tendency for some elements to offset others.” Ritholtz identifies eight “broad elements that typically determine the total return of any portfolio,” in descending order of importance (i.e. factors later in the list could potentially offset those listed earlier): Security selection: “No doubt,” writes Ritholtz, “better stock… Read More