4 ms·
High concentrations of the stock market has been around since forever: > Jason Zweig once shared that AT&T made up 13% of the U.S. stock market in the early-19
by throw0101c 3y ago
High concentrations of the stock market has been around since forever:
> Jason Zweig once shared that AT&T made up 13% of the U.S. stock market in the early-1930s. General Motors was 8% of the market in 1928 and IBM had a 7% weighting in 1970 (it was close to that again by 1985).
* https://awealthofcommonsense.com/2023/05/concentration-in-the-stock-market-2/ https://awealthofcommonsense.com/2023/05/concentration-in-th...
- quitit 3y ago> High concentrations of the stock market has been around since forever That's useful and interesting, but the importance of the topic today lays in rate of growth, rather than the % market cap against the greater stock market. Removing FAANG drops the rate of growth to roughly half. This indicates that tech companies are pulling up the average rate well above the historical average. The fact that many of them also possess very large market caps underlines the point that these businesses are unfathomably large in comparison to other business sectors. It's also worth noting that the historical averages includes the effects of AT&T, GM, IBM, et. al.