Smart money? Retail investors, intrinsic investors, and the Magnificent Seven
Smart money? Retail investors, intrinsic investors, and the Magnificent Seven
3 PagesRetail investors are increasingly investing in the largest companies on the S&P 500, known as the "Magnificent Seven" (Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA, and Tesla). Retail investors hold 30% of these companies, while intrinsic investors, who focus on long-term value, hold only 12%. This contrasts with other S&P companies where intrinsic investors hold 17% and retail investors only 18%. Historically, retail-driven price surges can signal bubbles, but it's unclear if that's the case with the Magnificent Seven.
