Kish & Hogan, 11(2)

Kish, R. J. & Hogan, K. M. (2000).Small stocks for the long run. Financial Counseling and
Planning, 11
(2), 21-31.

Small Stocks For The Long Run

Richard J. Kish1and Karen M. Hogan2

The growth of self-directed retirement accounts and discussion of possible overhaul of the Social
Security system has increased the need for educating the individual investor about asset allocation
and portfolio design. This paper analyzes individual asset returns and returns generated from three
commonly suggested portfolios. The returns are analyzed over the period 1926 through June 1998,
and four holding periods within that period. Investing in small stocks maximizes long run

Key words: Decision-making, Diversification, Individual investors, Portfolios

1. Richard J. Kish, Associate Professor of Finance, Lehigh University, 621 Taylor Street, Bethlehem, PA 18015. Phone: 610- 758-4205. Fax: 610- 758-6429. E-mail: rjk7

2. Karen M. Hogan, Associate Professor of Finance, St. Joseph’s University, Department of Finance – Man 236, 5600 City Avenue, Philadelphia, PA 19131. Phone: 610-660-1671. Fax: 610-660-1986. E-mail: