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Old 11.11.2020, 10:46
Enohzee Enohzee is offline
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Re: Should I buy a home or invest? I just reached 200k in savings and they are sittin

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Some survived but most didn't. The companies I mentioned may still exist but they are not top companies now.

You should look at which companies were top holdings in the 70s, 80s, 90s and the ones that still survive today.
I think what's important when investing is to remember you're buying a stake in the company, and not the share price. Over time, a good company will return value to shareholders (buybacks, dividends, retained earnings), so even if the company eventually "disappears" (which might anyway mean being bought by another), a good quality company should have given a decent shareholder return over time. A good quote I read regarding value is "all valuation techniques are shorthand for good discounted cash flow analysis".

Also regarding that, it gives a good argument for just buying an index (e.g. S&P500). You will automatically sell the "losers" and buy the "winners" as it's market cap based. For those who don't want to spend any time actively managing investments, it's hard to argue against just buying an index.
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