Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Ask a Fool: Why Do Well-Performing Stocks Increase Risk?

By Jason Moser - Sep 10, 2013 at 5:15PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

NASDAQ: AAPL

Apple Inc.

Market Cap

$2,657B

Today's Change

(-0.29%) -$0.48

Current Price

$164.87

Price as of August 8, 2022, 4:00 p.m. ET

Why the one-star performer in your portfolio may be exposing you to outsized risk.

In this video as part of our Ask a Fool series, Motley Fool One advisor Jason Moser takes a question from a Fool reader, who asks, "Why would a winning stock that has had a good run and now makes up a bigger portion of your portfolio, mean that there is a greater risk? Heard this argument on Market Foolery the other day. Doesn't make sense to me."

Jason Moser has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Apple Inc.

AAPL

$164.87 (-0.29%) $0.48

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Better Buy: Apple or Every Nasdaq Stock?

Warren Buffett Has Been Buying Stocks in 2022. Should You?

2 Reasons to Buy Stock Splits (And 1 Reason Not To)

1 Highly Underrated Moat in Growth Stocks

How Many of Your Stocks Are Based in California? (And Is That a Bad Thing?)

Motley Fool Returns

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns

377%

S&P 500 Returns

123%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/08/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Join Stock Advisor

Cumulative Growth of a $10,000 Investment in Stock Advisor

Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.