Google > YahooIt seems that newer technologies draw value from scale so I have a feeling small companies will have a very difficult time doing better than these behemoths with massive scale. That in turn means even more profits & greater margins.
What was the last small tech company to overtake large players? Maybe Zoom & Shopify mainly due to the pandemic. Microsoft pretty much took over the potential business customers of Zoom and so it collapsed.
Do not think so it will mean revert. It is like the winner takes it all with the built-in "leverage" through market cap on the SP500. The equal weight must and will underperform in the future too because of that. It is just a matter of time how much it will be behind the true SP500. I would not have expected anything else, to be honest (for 2023 performance comparison).The S&P 500 index is going to outperform the equal weight version of the index this year by the largest percentage difference since 1998.
The S&P 500 is up about 24% in 2023, while the equal-weighted index is up about 12%.
Have to wonder how many years for mean reversion?
20 years ago, amd only existed to keep intel from having a real monopoly of the market.Google > Yahoo
AMD > INTC
TSLA > Every other car company on earth (combined)
Most large tech companies were small players at one point until they became the Alpha
%%The S&P 500 index is going to outperform the equal weight version of the index this year by the largest percentage difference since 1998.
The S&P 500 is up about 24% in 2023, while the equal-weighted index is up about 12%.
Have to wonder how many years for mean reversion?