Retire Smarter with Kevin Kroskey, CFP® & Tyler Emrick, CFA® CFP®
Business:Investing
The five biggest tech stocks -- Amazon, Apple, Facebook, Google, and Microsoft -- are great businesses. They've been so successful over the last decade that they comprise about 20% of the total S&P 500 market capitalization -- a level of concentration not seen since the late 1990s. They also command higher prices (valuation) than the market as a whole.
While these companies have provided outsized growth rates and returns to investors over the last decade, there is no logical reason you should expect similar outsized growth rates and returns over the coming decade. Whether it is due to the magnitude of their success, capitalism or regulation, it will be nearly impossible to repeat their growth and success moving forward.
Listen to Kevin describe a simple thought experiment illustrating why it's mathematically impossible for past to be prologue for these tech darlings. Eventually, the music will run out. Investors will again learn the lesson that price matters ... just as they learned the same at the end of the Tech Bubble.
Timestamps:
6:24 - Why Do Tech Stocks Get So Much Attention?
9:46 - Looking Back At Tech Stock Growth From 2010-2019
14:57 - Why Growth Will Be Much More Difficult Going Forward
25:00 - Why Prices Matter
Surprising Lessons on Stock Returns and Diversification
It’s the End of the World as We Know It, and Why to Feel Fine
Red Flags of Investment Fraud
Pension Lump Sums - You May Need To Act Now in 2022
The Story of Dr. Smith
Understanding Your Retirement Plan Results
Mailbag - Bear Market Investment Questions
Interview with Retirement Researcher Dr. David Blanchett Part 2
Interview with Retirement Researcher Dr. David Blanchett Part 1
Ep 100: Not So Smart Things Even Smart Investors Do
Ep 99: Whoa! Stocks and bonds both going down? What’s going on?
Ep 98: Interview with Retirement Researcher Dr. Michael Finke Part 2
Ep 97: Interview with Retirement Researcher Dr. Michael Finke - Part 1
Ep 96: Rules Gone Awry, Part 5 - Retirement Healthcare Is Exorbitant
Ep 95: Rules Gone Awry, Part 4 - The 4 Percent Rule
Ep 94: Rules Gone Awry, Part 3 - The Rule of 100
Ep 93: Rules Gone Awry, Part 2 - Take Social Security Early
Ep 92: Rules Gone Awry, Part 1 - The 80% Spending Rule
Ep 91: What Retirees Want in a Home
Ep 90: What Retirees Want in Time, Health & Relationships
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