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Stock Concentration and the Magnificent Seven

This week on Grow Money Business we are talking about stock concentration and the Magnificent Seven. 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.
https://www.downtownjoshbrown.com/p/ai-revolution-youre-focused-pe-ratios

What Are the Magnificent 7 Stocks?
https://www.kiplinger.com/investing/stocks/what-are-the-magnificent-7-stocks

Nifty Fifty
https://en.wikipedia.org/wiki/Nifty_Fifty

Grant Bledsoe Financial Planner to Business Owners

I'm a financial planner to business owners, and the founder of Three Oaks Wealth. Our firm helps business owners align their business interests with their personal finances, often including the exit or sale of equity holdings.

I hold several professional credentials, including the CERTIFIED FINANCIAL PLANNER™, Chartered Financial Analyst, and Certified Exit Planning Advisor designations.

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