Who gets the best return on stock-market investments? Not finance professionals

Andriy Bodnaruk, who teaches behavioral finance at Notre Dame University, says that Openfolio’s findings are consistent with his own research in the past, but advises caution. The tech investors’ concentrated wealth may have to do with the high-flying stocks of tech in the past few years. Another interesting finding is that no matter what their profession, investors’ wealth was heavily concentrated in their own industries. Technology professionals tend to own more technology stocks because their companies tend to pay employee bonuses in stock. Finance professionals, similarly, have their money concentrated in their own companies’ stocks. While this shows a certain amount of devotion, such arrangements also devastated the employees of Lehman Brothers and Enron, who were paid primarily in company stock. One-third of Lehman’s stock, for instance, was owned by its own employees.

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