From IBM to the Magnificent 7: Why Market Leaders Don’t Stay on Top Forever

Every generation has its market giants, companies that seem unstoppable. For decades, IBM held that title. Today, the spotlight shines on the so-called “Magnificent 7”: Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla. But history reminds us that even the strongest companies can lose their edge over time.

In this video, we look at how IBM’s long, gradual decline offers a lesson for investors who might be tempted to concentrate too heavily in today’s market leaders. Using research from Dimensional’s piece “Will the Magnificent 7 Stay on Top?”, we explore why diversification is key to long-term success and why yesterday’s winners do not always stay that way.

Watch the video below to learn how market history can help shape smarter investing decisions today.