8min chapter

The Compound and Friends cover image

Charlie Munger Passes, What’s in Warren Buffett’s Will With Gary Pulford, Year End Stock Rally

The Compound and Friends

CHAPTER

The Apocalypse for Stock Pickers

This chapter explores the performance of individual stocks compared to the S&P 500 index, highlighting that most stocks do not outperform the index. The speaker discusses recent statistics and presents a chart showing the years it would take for S&P 500 companies to spend their market cap on CapEx and R&D, with some companies taking significantly longer than the average. Additionally, the concept of market run rate dilution and its impact on market cap growth is explained.

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