Episode #222: Stock Concentration and the Magnificent 7

This week on Grow Money Business we are talking about stock concentration and the Magnificent 7. Last year, there was a group of seven companies that produced a huge portion of the S&P 500’s approximately 20% annual return. Join us as we dive into why these seven companies out-performed, arguments for why they may or may not continue to out-perform, comparisons for this type of stock concentration to other periods historically, and more.

Show Notes

[03.38] The Magnificent Seven – Google, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla are the seven companies recognized for their market dominance in 2023.

[08.05] The P/E ratio – Grant dives into the P/E ratio, one of the most popular stock valuation indicators for investors and analysts.

[12.48] Nifty 50 - Nifty 50 is the 50 most popular large-cap stocks that traded at high valuations in the 1960s and 1970s.

[17.00] Future – Grant explains what the next 10-15 years look like for the companies with an over 30 P/E ratio.

[26.00] Artificial Intelligence – Grant shares his thoughts on why AI is overhyped and what the future will look like.

Resources

It’s the AI Revolution and you’re focused on PE ratios.

downtownjoshbrown.com/p/ai-revolution-youre-focused-pe-ratios

 

What Are the Magnificent 7 Stocks?

kiplinger.com/investing/stocks/what-are-the-magnificent-7-stocks

 

Nifty Fifty

en.wikipedia.org/wiki/Nifty_Fifty