Finding value in more than just the Magnificent Seven
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        Finding value in more than just the Magnificent Seven

  Coronation Management Company   Q3 of 2024 | 7 months ago

Many stock markets have delivered strong returns thus far in 2024, but the US continues to dominate, compounding more than a decade of outperformance. Indeed, much has been written about the narrowness of stock market returns, with the US beating all regions, technology beating all sectors, and the Magnificent Seven of Amazon, Alphabet, Apple, Microsoft, Meta, Nvidia and Tesla trouncing, well, almost everything. In fact, an equal-weighted index of these seven shares has returned an annualised 47% over the last five years, roughly triple the S&P 500’s very healthy 16% (Figure 1). To put this into perspective, $1m invested in the Magnificent Seven five years ago would now be worth $6.8m, compared to $2.1m if invested in the S&P 500 and $1.3m if split equally across the five other indices shown in Figure 1.


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Did You Know ?

Alex Forbes entered the collective investments industry by acquiring the the asset manager Investment Solutions in late 2010s.

Ninety One overall assets under management are hovering around 3 trillion , that's almost the entire size of out unit trusts industry.

Asset manager Prime Collective Investment was founded by Shane Peters in 2005.

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Disclaimer
All the information presented in this website is generally geared towards educational content , so it does not constitute a personal investment advice.