Yes, the evolution of the acronyms from the original FANG (Facebook, Amazon, Netflix, Google) not only includes a company that is no longer in the current acronym (Netflix), but also name changes from Facebook to Meta, and Google to Alphabet to alter the letters of the acronyms, and the addition of Microsoft, Nvidia, Tesla, and now Broadcom. I guess we can all envision future acronyms that account for the never ending changes.The very fact that the acronyms only last a couple of years shows that we are not talking about any persistent structure in the stock market, just that--like many natural phenomena--the distribution of sizes means that a small percentage by count contain a big percentage by weight....Step aside Magnificent Seven, and say hello to Batmmaan!
B=Broadcom (AVGO)
A=Apple (AAPL)
T=Tesla (TSLA)
M=Microsoft (MSFT)
M=Meta Platforms (META)
A=Amazon (AMZN)
A-Alphabet (GOOG, GOOGL)
N=Nvidia (NVDA)...
It was Cisco, Intel, Microsoft, Oracle, Applied Materials, Micron, Qualcomm, etc. that captured the lion's share of attention in the 1990's. There was plenty of discussion on Nvidia, Broadcom, Apple, Arm Holdings, etc. at the time as well (on the Motley Fool and Silicon Investor discussion boards). I don't recall if there were any acronyms being bandied about back then outside of the JDSU ticker symbol becoming an acronym at the time for Just Don't Sucker Up by investing in it, and TALC from the Geoffrey Moore inspired Crossing the Chasm, Inside the Tornado, and The Gorilla Game investing along with using other terminology. There was plenty of talk of technology adoption life cycles (TALC) - which do come and go - along with the move into vertical markets by these Goliaths & Gorillas to keep their feeding frenzy of profits going.
And as index investors - we own them all. My household is a bit more sanguine on the mega-cap stocks than the OP based on the knowledge that only a few companies provide the lion's share of the stock market returns, so we want to own them - not run from them.
In honor of a former FANG member, we will be watching the Chiefs play on Netflix today.
CyclingDuo
Statistics: Posted by CyclingDuo — Wed Dec 25, 2024 9:50 am