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The Money Paradox: Why More Wealth Doesn't Always Equal More Happiness

Pirates of Finance

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The Importance of Market Footprint

The S&P 500 is trying to measure size of the underlying company, not market cap. The stuff you buy is always smaller from a market cap perspective than the stuff you sold. In 1999, there was so much dog shit that had zero economic footprint, but was a big market cap. Today, if you do the same thing, only about 20% of the name could get filtered out.

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