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50% of SPY constituents are going to beat SPY. That in itself doesn't imply the CEO is a meaningful factor in company performance.


This isn’t true because of the weighting. If apple doubles in value SPY will be up 8% from that alone. It’s easy to see a scenario where one massive company has an incredible year and every other company returns below the average.


Or, alternatively, one massive company has a bad year, and everyone else comes out smelling like roses.

On average, 50/50 is a pretty decent benchmark here.




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