The late 60’s and early 70’s were the “go-go” years on Wall Street. You had a massive boom in the number of young people joining the investment industry, and there was a group of 50 companies called the Nifty Fifty. These were supposed to be “one decision companies” that you could buy at any price and still get rich. The logic was that their amazing earnings growth would make up for their high price… Well, it didn’t quite turn out like that. Check out this episode for the lessons from their boom and bust. We’ll also take a look at Jeremy Siegel’s research on their Nifty Fifty (which might shock you!)

Sources:

https://www.investopedia.com/terms/n/niftyfifty.asp

https://www.cnbc.com/2018/11/28/lessons-from-the-nifty-fifty-in-the-1970s-could-be-applied-to-fang.html

https://www.stewartinvestors.com/all/insights/stap/nifty-fifty.html

https://medium.com/@equityschool/nifty-fifty-stock-bubble-of-the-seventies-is-there-a-similarity-with-today-s-market-34b19d7a4cff

https://www.oaktreecapital.com/docs/default-source/memos/something-of-value.pdf

https://awealthofcommonsense.com/2020/07/the-nifty-fifty-and-the-old-normal/

http://csinvesting.org/wp-content/uploads/2015/03/valuing-growth-stocks-revisiting-the-nifty-fifty.pdf

https://www.cnbc.com/2017/05/26/were-not-in-the-danger-zone-for-overheating-says-longtime-stock-bull-jeremy-siegel.html

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This podcast is for entertainment purposes only and should not be relied upon as the basis for investment decisions. Before making any decisions, consult a professional. I may maintain positions in the securities discussed on this podcast. This show is copyrighted by the Wall Street Vision, written permission must be granted before syndication or rebroadcasting.