search query: @author Barber, B. M. / total: 7
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| Author: | Barber, B. M. Odean, T. |
| Title: | Too many cooks spoil the profits: Investment club performance |
| Journal: | Financial Analysts' Journal
2000 : JAN/FEB, VOL. 56:1, p. 17-25 |
| Index terms: | Investments Performance appraisal USA |
| Language: | eng |
| Abstract: | This article reports on account data from a large discount broker used to analyze the common stock investment performance of 166 investment clubs from February 1991 to January 1997 shows that the average club earned an annualized geometric mean return of 14.1% whereas a market index returned 17.9 %. In addition, 60% of the clubs underperformed the index. Two reasons account for the poor performance: trading costs and investment style. Investment clubs serve useful functions in encouraging savings, in educating their members about financial matters, in fostering friendships and social ties. However, their investments do not beat the market. |
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