The Compound and Friends

It Doesn't Matter Until It Matters

Feb 4, 2022
Peter Boockvar, an investment and economy expert, shares his insights on the current state of the economy, particularly focusing on the $30 trillion U.S. debt and its complex relationship with interest rates. He discusses venture funding trends and consumer behavior in the wake of recent market volatility. The market's reactions to major tech earnings, such as Facebook and Spotify, reveal deeper truths about investor psychology and economic recovery. Tune in for a blend of finance and entertaining insights!
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INSIGHT

Market Cap Growth

  • The US market cap has grown significantly, driven by factors like 401k/IRA growth and passive investing.
  • Software companies' scalability contributes to their substantial revenue and margins.
ANECDOTE

Microsoft's Stagnation

  • Despite Microsoft's dominant 85% market share in 1999, its stock stagnated for 13 years.
  • Though CEO Steve Ballmer tripled earnings during his tenure, the stock didn't reflect this growth.
INSIGHT

Google's Business Model

  • Among FAANG companies, Google's business model, particularly search advertising, stands out.
  • While other tech giants face challenges, Google's diverse revenue streams make it resilient.
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