Baker says great public equity investors are often wrong more than right, with best batting averages around 55%.
“They're wrong more than they're right, but because they make more money when they're right, they still have a great track record.”
Baker says Nasdaq returns in 2021 were dominated by Google, Microsoft, Nvidia, and Tesla, requiring 60% concentration.
“The market return, particularly for the Nasdaq, was really dominated by a few stocks, Google, Microsoft, Nvidia, Tesla.”