The risk of the single share

Over a short-term period, less than half of all German stocks generate a positive return. In the long run, the return is positive for only six out of ten stocks. Moreover, one in five shares suffers an almost complete loss of value in the long-term. Although the variation in returns decreases as the market value increases, it remains enormous even for the largest companies. For investors in the German stock market, diversification is therefore essential to reduce risks.

This study is available in German only.