How Inflation Erodes Your Retirement Savings—and What to Do About It
How Inflation Erodes Your Retirement Savings—and What to Do About It Inflation is often called the “silent” threat to retirement, and the nickname is fitting. Unlike
In 2025, the “Magnificent 7” became a familiar headline across financial news. These powerhouse companies—primarily large, innovative technology firms—have played an outsized role in driving the performance of public markets in recent years. Their scale, visibility, and consistent innovation have had a meaningful impact on the return profile of the S&P 500.
But while these public giants have gained wide recognition, a second group of high‑growth innovators has emerged—this time in private markets. Often described as the Private Magnificent 7, these companies represent some of the most exciting developments across artificial intelligence, space exploration, defense technology, and data infrastructure.
This group includes bold, fast‑growing firms such as SpaceX, OpenAI, Anduril, Databricks, and xAI—companies reshaping industries long before entering public markets.
Between September 2024 and early January 2026, the public Magnificent 7 delivered an impressive cumulative return of approximately 41%.
However, over that same period, the Private Magnificent 7 produced a remarkable 219% cumulative return—over five times higher.
Source: Forge Global, Inc., The Private Magnificent 7, as of January 7, 2026.
This performance gap underscores an important reality: some of today’s most powerful growth opportunities are happening long before a company becomes publicly traded.
Beyond performance, the two groups differ significantly in structure, maturity, and long‑term potential.
While public companies offer stability, proven business models, and liquidity, private companies often provide earlier access to disruptive innovation and faster potential growth.
Younger, smaller private firms can still be in the early innings of expansion—where meaningful value creation often occurs.
The rise of the Private Magnificent 7 highlights a growing trend: much of today’s transformative innovation is taking place in private markets, years before reaching the public eye.
Private investments may offer:
However, these opportunities also come with important considerations, including reduced liquidity, longer investment horizons, and additional due diligence requirements.
As an independent, fee‑only advisor, Davis Capital Management is uniquely positioned to evaluate opportunities across both public and private markets. Our independence means we are not limited to proprietary products or in‑house funds—we can focus solely on what aligns best with each client’s goals.
We provide access to carefully selected private market opportunities, including private equity offerings through established institutional platforms such as StepStone. This allows our clients to participate in innovative growth stories that may not yet be accessible in public markets.
Through disciplined portfolio construction, thoughtful diversification, and ongoing due diligence, we help clients pursue growth while maintaining a prudent long‑term strategy.
The contrast between the public and private Magnificent 7 reinforces a powerful truth: innovation doesn’t wait for the stock market.
Many of the most compelling opportunities in today’s investment landscape occur long before companies go public.
For investors focused on long‑term growth, understanding—and accessing—both sides of this market evolution may unlock meaningful advantages. Davis Capital Management is committed to guiding clients through this expanding opportunity set with clarity, independence, and a focus on their long‑term financial goals.
This material is for informational purposes only and does not constitute investment advice or an offer to buy or sell any security. Private investments involve risk, including potential loss of principal, lack of liquidity, and extended investment timelines. Past performance does not guarantee future results. All investments should be evaluated based on individual circumstances and in consultation with a qualified financial advisor. Davis Capital Management is a fee‑only registered investment adviser. References to third‑party managers or companies, including StepStone, are for illustrative purposes only and do not imply endorsement or guarantee of results.
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