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You have to compare any growth against a benchmark index which reflects what would’ve happened if the company had simply invested its assets in that index fund
by frutiger 3y ago
You have to compare any growth against a benchmark index which reflects what would’ve happened if the company had simply invested its assets in that index fund instead.
- hattmall 3y agoEh, not really, especially with the extremely dangerous weighting of the S&P.
- frutiger 3y agoYou have to carefully choose the benchmark but you need to benchmark against something.
- nightski 3y agoThat's nonsensical when they are part of the index driving that growth.
- frutiger 3y agoThat’s right, e.g. you can’t really choose SPX for any of the top 10 members (AAPL, MSFT, AMZN, NVDA, GOOGL, META, GOOG, TSLA, BRK/B, JPM) but after that it trails off pretty quickly.