How important are your stock picks?

Everyday we are inundated with stock tips: buy this, hold that, etc. There’s even an astrologer who gives out stock-tips, “Ganeshaspeaks” for example. Should you pay attention? Turns out, you don’t.

Studies consistently show that asset allocation is the source of more than 90 per cent of investment returns, while stock selection adds little, perhaps because so many fund managers only make small bets relative to the index they are measured against.

i.e., momentum investing works.

Source:
Bin the crystal ball and follow the money