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Can Losers in Your Portfolio Really Hold up in the Future?

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The argument that losers in your portfolio will outperform in the future doesn’t generally hold up to close scrutiny. After analyzing the trading records of 10,000 discount-brokerage accounts, Terrance Odean, now of the University of California, Berkeley, concluded that “Investors who sell winners and hold losers because they expect the losers to outperform the winners in the future are, on average, mistaken.”
Source: http://www.valueinvestorinsight.com/

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