"In bubbles, investors treat the leading companies – and pay for their stocks – as though the firms are sure to remain leaders for decades. Some do and some don’t, but change seems to be more the rule than persistence."

Howard Marks "On Bubble Watch" memo is a great reminder on the privilege of persistence within the S&P 500:

- only 6 of the top 20 companies from 2000 are still in the top 20 today
- of today’s “Magnificent Seven” (tech giants), only Microsoft was a top 20 company 24 years ago
- only about half the Nifty Fifty (1960s market darlings) are in the S&P 500 today, most notably Xerox, Kodak, Polaroid, Avon, Burroughs, Digital Equipment

"In bubbles, investors treat the leading companies – and pay for their stocks – as though the firms are sure to remain leaders for decades. Some do and some don’t, but change seems to be more the rule than persistence."

Howard Marks "On Bubble Watch" memo is a great reminder on the privilege of persistence within the S&P 500:

- only 6 of the top 20 companies from 2000 are still in the top 20 today
- of today’s “Magnificent Seven” (tech giants), only Microsoft was a top 20 company 24 years ago
- only about half the Nifty Fifty (1960s market darlings) are in the S&P 500 today, most notably Xerox, Kodak, Polaroid, Avon, Burroughs, Digital Equipment

https://www.oaktreecapital.com/insights/memo/on-bubble-watch