10min chapter

Many Happy Returns cover image

David vs Goliath: Small-Cap Stocks Finally Surge

Many Happy Returns

CHAPTER

Cycles of Market Dominance

This chapter examines the cyclical nature of market concentration, drawing on historical patterns observed in various industries over the past century. It highlights the concept of 'half-life' in relation to market-leading stocks and discusses the implications of current dominance by major tech firms. Through comparisons with past industries, including railroads and automobiles, the chapter explores the factors that can disrupt even the most established companies, emphasizing the role of regulation, competition, and innovation.

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