Microsoft, Apple, Amazon, Google, Facebook make up something like 20% of the S&P 500, and most of its gains. Apple and Microsoft are 10% alone.
So you could make the same argument for someone who chose to invest in the whole index, vs just the top 5. Its not necessarily a good argument. It will be interesting if they are still the top 5 tech companies in 10 years. It feels like they have a bit more of a foothold than the Dell, IBM, HP of years past. Maybe cloud vendor lock in isnt worse than the platform lock ins they sold.
Microsoft, Apple, Amazon, Google, Facebook make up something like 20% of the S&P 500, and most of its gains. Apple and Microsoft are 10% alone.
So you could make the same argument for someone who chose to invest in the whole index, vs just the top 5. Its not necessarily a good argument. It will be interesting if they are still the top 5 tech companies in 10 years. It feels like they have a bit more of a foothold than the Dell, IBM, HP of years past. Maybe cloud vendor lock in isnt worse than the platform lock ins they sold.