“A Day in the Life” is the concluding song of The Beatles' iconic 1967 album, Sgt. Pepper's Lonely Hearts Club Band. John Lennon's masterful creation of the opening and closing sections, along with Paul McCartney's notable contribution to the song's middle section, make it a timeless and instantly recognizable piece of music history.
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Lennon's lyrics were mainly inspired by contemporary newspaper articles, including a report on the death of Guinness heir Tara Browne. John had seen an article in the Daily Mail that referenced 4,000 holes in the road in Blackburn, Lancashire, which he also incorporated into the lyrics. In the song's middle segment, McCartney recalls his younger years, which included riding the bus, smoking, and going to class. A lot of the song was drawn from Lennon and McCartney's personal memories or observations from everyday life and happenings in England.
For those who appreciate unique musical experiences, 'A Day in the Life' is always fun to hear. This classic song includes one of the most famous ending chords in music history, was played on several keyboards, and lasted over forty seconds. A YouTube link with the lyrics is included below for your listening pleasure.
The Beatles - A Day In The Life
Just as The Beatles drew inspiration from their everyday lives, in the late 1980s, I was given an example of what a day in your life might look like through interactions with companies that were represented by their stock. This personal anecdote still resonates with me. Although I was unable to find the original document and searched unsuccessfully to find it online, I am going to do the best I can to give you some sense of what the message of that observational piece was below. I updated this verbal picture for life today versus the original version I remember from 35 years ago.
“You wake up in the morning when the alarm on your Apple iPhone goes off. You head toward the shower, where you use your Barbasol shaving cream, Dove soap, Sure deodorant, and Jurgens lotion to help get you presentable for the day ahead.
You go downstairs, make some Dunkin' Donuts coffee, and have your Post Raisin Bran for breakfast. After brushing your teeth with Colgate toothpaste, you head to the office in your Toyota Camry.
While at work, you interact with your Dell computer and the Microsoft Office Suite software. You also use your Xerox copier to make copies to share with coworkers at your late morning meeting. After the meeting, you and several work friends head to get a quick lunch at Chipotle….”
The story continues from there. By the end of the day, this fictional person had interacted with dozens of companies. Each interaction and purchase added to the revenues of those companies.
I am telling you this story because many people think that they are investing in "the stock market" as if it is one homogeneous thing. In truth, the stock market, illustrated by the S&P 500 index, represents 500 of the largest, most liquid, innovative, and well-run companies in the world.
Our friends at Visual Capitalist put together a great representation of this in the chart below. Often, stocks are ranked by the overall market value or capitalization of their shares. However, the chart below ranks the top ten companies in 1994 and 2023 by their overall revenue. Those revenues are driven by the purchases each consumer makes each year. Please review each column, I will make a few closing observations below.
The first thing I want you to observe is that over the last 30 years, the combined revenues of these companies have grown by more than 400%. This is despite the numerous economic and geopolitical events and periods of dislocation that we have experienced over the last three decades. The second thing you will notice is that only two of the companies in the 1994 list are still represented on the 2023 list. This is because corporate leadership, technological advancements, and consumer preferences evolve over time. This always has been, and we trust this always will be the case in the future.
I encourage you to take a day in your life and track your interactions with corporate America, then consider the stocks represented in these transactions. I also want you to stop thinking that you are investing in the stock market, but rather a market of stocks that represent actual companies. These companies have adapted, evolved, grown their revenues through multiple economic environments in the past.
I thought this was a fun and practical illustration to share with you, the trusted friends and clients of Impel Wealth Management. We encourage you to share this message with your friends and loved ones. As always, if you have questions about your particular situation or would like to discuss something further, please reach out. We are here for you as we continue “Moving Life Forward.”
© 2024 Jesse Hurst
Senior Wealth Manager
The views stated are not necessarily the opinion of Cetera and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.
Neither Cetera Advisors LLC nor any of its representatives may give legal or tax advice. This information is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
Investors cannot directly invest in indices.
Featured blog image source: iStock.com/VLG