Investing in Public Markets – The Importance of Hitting Singles and Doubles in Your Portfolio | AWM Insights #226

Five Key Takeaways

• Consistency beats concentration: The 2001 Mariners won a record 116 games with 10 hits per game but only one home run per game, proving small ball wins championships

• Market leaders don't last: Only Microsoft survived in the top 10 companies from 2000 to 2025, a 25-year span that proves concentration is risky

• Public markets reward discipline: Your public portfolio should target 9-10% returns annually through diversification, not stock picking

• Small details compound: Cost management, tax efficiency, global diversification, and including small caps and REITs stack the deck in your favor

• Liquidity matters: Public markets provide the flexibility to meet obligations and unexpected expenses while your private investments grow

The Core of Your Growth Strategy

Your public market portfolio isn't where you swing for the fences. It's where you get on base, consistently, building the backbone of your offensive game plan. Think of it as the foundation of your growth strategy, separate from the defensive holdings that protect your wealth.

The majority of public market companies don't deliver outsized returns, and picking the next Nvidia or Build-A-Bear is extraordinarily difficult. The data doesn't lie. Trying to identify tomorrow's winners by chasing yesterday's heroes is a losing strategy. Right now, we're seeing massive concentration in five to seven tech names driving market returns. History tells us this won't last. The lineup changes, the game evolves, and yesterday's Nokia becomes tomorrow's cautionary tale.

Building Your Complete Lineup

A well-structured public portfolio means no missing pieces, no weak links. You need global diversification, small cap exposure, real estate investment trusts, and broad market coverage. Remember the dot-com bubble? Concentrated portfolios in tech names saw 75-80% declines when the NASDAQ imploded. Your portfolio needs to handle different circumstances and deliver good outcomes regardless of the obstacle.

The small ball approach matters here. Cost management, tax efficiency, effective implementation, these details compound over time. You're not trying to hit bombs every at-bat. You're playing your game, understanding the data, and maximizing outcomes through discipline and diversification.

Data-Driven Decisions Win Games

The beauty of public markets is the wealth of data at our fingertips. Decades of academic research guide our decisions. History doesn't repeat itself, but it rhymes. We know concentration doesn't last. We know stock picking underperforms diversification. We know costs and taxes erode returns. Using this data, we build portfolios designed to get on base consistently with high probability over long periods.

Your Portfolio's Offensive Powerhouse

Public markets provide something private investments can't: consistent liquidity and the ability to meet obligations while continuing to grow your wealth. They're your source of predictable returns, your path to staying in the game year after year. Combined with the big swings in private markets, your public portfolio creates a complete offensive strategy built for generational wealth.