How the Hedge-Fund Industry Came About How the Price to Cash Ratio is Useful

How the Old S&P 500 Beats the New S&P 500

If you had bought the S&P 500 firms in 1957 and just held them and forgotten about all the companies that came into it since then, you would have beaten the S&P 500 index with all the firms that have been added. The major reason is that firms that have been added to the index are overpriced.