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The Case For The Good Enough Portfolio

As an investor, is being “good enough” good enough? The author of today’s article compares the returns of two hypothetical portfolios with the same 60/40 stock/bond mix and identical asset class allocations – the only difference between the two portfolios is their specific holdings, with Portfolio 1 holding the best performing funds over the last ten years while the funds in Portfolio 2 are mostly random selections. How does the performance of the “good enough” portfolio compare to that of the “optimal” portfolio – and what is the lesson for investors? CLICK HERE to find out.