How can 1 US company be worth more than the top 350 UK companies?

GeoffTF

Cus said:

Edit to add: if we think to the extreme, and 100% of investing is passive market cap based without any individual value assesment, where does that lead us?

That would never happen. If it did, the market caps would be forever frozen.

A completely passive investor will typically buy a global tracker and hold it for 50+ years. An active investor will typically hold a share for a few months. A typical active investor trades over a 100 times more than a completely passive investor. If the active investors were only 1% of the market, they will still do most of the trades. I do not believe that even that scenario will ever happen.

Hoenir

GeoffTF said:

Cus said:

Edit to add: if we think to the extreme, and 100% of investing is passive market cap based without any individual value assesment, where does that lead us?

A completely passive investor will typically buy a global tracker and hold it for 50+ years. 

The world of investing unfortunately holds no long term certainies. Section 899 of the Big Beautifull Bill. May well be another torpedo through complacent thinking. 

GeoffTF

Hoenir said:

GeoffTF said:

Cus said:

Edit to add: if we think to the extreme, and 100% of investing is passive market cap based without any individual value assesment, where does that lead us?

A completely passive investor will typically buy a global tracker and hold it for 50+ years. 

The world of investing unfortunately holds no long term certainies. Section 899 of the Big Beautifull Bill. May well be another torpedo through complacent thinking. 

Yes, as I said. It is an unrealistic scenario. Nonetheless, even if we are one of the countries that Trump detests the most, Section 899 would be about 0.3% off our total return for the US. Less than 0.2% for the world. ...and for how long? There are always bigger risks than that. Even money under the mattress may be of no use at all.

poseidon1

See below latest bevy of UK tech companies heading  across the pond by way of American acquisitions

https://www.cityam.com/three-tech-firms-bail-out-of-the-uk-in-a-single-day/

With Wise also currently heading across for a primary listing on the NYSE, perhaps the UK's persistent inability to hang on to its fledgling and mature growth businesses as eventual constiuents of the LSE, partially addresses the OP's opening question. 

Hoenir

GeoffTF said:

Hoenir said:

GeoffTF said:

Cus said:

Edit to add: if we think to the extreme, and 100% of investing is passive market cap based without any individual value assesment, where does that lead us?

A completely passive investor will typically buy a global tracker and hold it for 50+ years. 

The world of investing unfortunately holds no long term certainies. Section 899 of the Big Beautifull Bill. May well be another torpedo through complacent thinking. 

Yes, as I said. It is an unrealistic scenario. Nonetheless, even if we are one of the countries that Trump detests the most, Section 899 would be about 0.3% off our total return for the US. Less than 0.2% for the world. ...and for how long? There are always bigger risks than that. Even money under the mattress may be of no use at all.

Throw a pebble in the centre of a pond and the ripples spread far and wide. Causing collateral damage in the most unexpected of places.