Why companies die but indexes are forever, Pimp my portfolio & ETF overlap

Between 1950 and 2009, 78% of companies listed on the US stock market went bankrupt. That was a finding from Geoffrey West in his book Scale.

Makes the stock market seem pretty risky right?

In that time, the US stock market grew 23,249%. Or, put another way, each $100 invested in 1950 turned into more than $200k. In this episode we share how you can reconcile those two numbers and ultimately why companies may die but indexes are forever.

Here's what else we cover in today's episode:

• How indexes have changed over time
• Adam Dawes returns for another Pimp my Portfolio
• The challenge of ETF overlap: what is it, when is it okay and how can you measure it?

Resources discussed:

• Examine ETF overlap with ETF Tracker
• Pick up our book Don't Stress, Just Invest
• Have a question? Ask via our website and we'll answer it on the podcast.
• Join the conversation in the Facebook Discussion Group

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In the spirit of reconciliation, Equity Mates Media and the hosts of Equity Mates Investing acknowledge the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respects to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander people today.

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