Gurley claims only three to five companies per decade sustain market caps of $50 billion or greater.
“And what I think is really interesting, if you think about value creation, in any decade, are really three to five companies that sustain $50,000,000,000 market caps or greater.”
Gurley notes telecom market share consolidated from 48% to 85% after 1996 Telecommunications Act.
“In 1996, the top four had 48 market share. Four, five years later, after this heralded legislation, they're up to 85%. That didn't work. Let's check-in on the second one. Were they promoting innovation?”
Gurley reports Nvidia alone accounts for 5% of S&P 500 returns while 493 other companies contribute only 4%.
“The other mag six are responsible for 5%. And then the other 493 companies in the S and P 500 are responsible for 4% of the 14% year to date returns.”