No abstract

We examine the returns to investors in publicly traded stock in new industries. We examine data from the United States on sellers of own-brand personal computers, airlines and airplane manufacturers, automobile manufacturers, railroads and telegraphs. A relatively small number of companies generate outstanding returns and many firms fail in some new industries. We find that firms in new industries typically have high volatility of individual stocks' returns and high expected returns relative to indexes for the same period. Portfolios of firms in new industries generally have lower Sharpe ratios than the overall market. Acknowledgement 1 We thank Paula Tkac for numerous helpful comments.

No abstract

No abstract

We examine the returns to investors in publicly traded stock in new industries. We examine data from the United States on sellers of own-brand personal computers, airlines and airplane manufacturers, automobile manufacturers, railroads and telegraphs. A relatively small number of companies generate outstanding returns and many firms fail in some new industries. We find that firms in new industries typically have high volatility of individual stocks' returns and high expected returns relative to indexes for the same period. Portfolios of firms in new industries generally have lower Sharpe ratios than the overall market. Acknowledgement 1 We thank Paula Tkac for numerous helpful comments.