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Interesting! I hadn’t seen this article, but now I’m curious how many of these were “fake” internet companies. Given it being 1996, it probably shouldn’t be too
by boulos 9y ago
Interesting! I hadn’t seen this article, but now I’m curious how many of these were “fake” internet companies. Given it being 1996, it probably shouldn’t be too heavily dominated by fly by night internet companies (yet). I’d be curious how these numbers compare to say 1986 as another data point.
- prostoalex 9y agoEven outside of the dotcom context the technology nowadays rewards consolidation. All publicly listed internet portals of the 90s (Yahoo, Infoseek, Excite, Ask Jeeves) have been essentially overrun by Google. Retail had to either consolidate, slim down or delist due to a private equity infusion, with AMZN emerging as a clear winner.
- heymijo 9y agoNot sure that thesis holds water. Michael Mauboussin published the paper, "The Incredible Shrinking Universe of Stocks: The Causes and Consequences of Fewer U.S. Equities" in 2017 [0]. The Big Ideas: IPO's and being public are more expensive with less benefit while at the same time M&A has flourished. [0] http://www.cmgwealth.com/wp-content/uploads/2017/03/document_1072753661.pdf http://www.cmgwealth.com/wp-content/uploads/2017/03/document...
- boulos 9y agoThanks! This is a great read. The number of small cap companies that have been gobbled up by PE firms really shows through in these graphs.
- rgbrenner 9y agohere's a more detailed article with a chart back to 1980: https://corpgov.law.harvard.edu/2017/05/18/looking-behind-the-declining-number-of-public-companies/ https://corpgov.law.harvard.edu/2017/05/18/looking-behind-th... This article suggests it's all micro-cap stocks: https://www.institutionalinvestor.com/article/b15nlcmsmn57fx/why-vanguard-isnt-freaking-out-about-fewer-public-companies https://www.institutionalinvestor.com/article/b15nlcmsmn57fx...