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> Buying $1000 Microsoft stock in 1986, you'd have seen a more than 1000x return in that amount of time. Presumably you wouldn't be buying one stock, but a por
by prostoalex 8y ago
> Buying $1000 Microsoft stock in 1986, you'd have seen a more than 1000x return in that amount of time.
Presumably you wouldn't be buying one stock, but a portfolio of other public companies, including Real Networks, Enron, and MCI/Worldcomm.
Backtesting the portfolio built on the thesis "buy every single stock at its IPO" has been shown to lag the market.
- snowwrestler 8y agoThe question is, looking back 30 years from now, will there as many (or any) public stocks that will have performed as well then, as MS has from 1986 to today? Or will all the explosive early gains in future companies' growth be captured by the private equity ecosystem before the companies go public?
- prostoalex 8y agoI lean towards the latter option. Sarbanes-Oxley's aim was to de-risk the market, and lower risk generally brings lower returns.