Here’s how the top 10 S&P 500 stocks have changed over the last 50 years

Top 10 S&P 500 Stocks Today Top 10 S&P 500 Stocks 2000 Top 10 S&P 500 Stocks 1973

I love looking at these charts because they really squash some of the myths around investing and highlight the benefit of investing in index funds. Let’s break down some of the takeaways.

* “Tech giants have gotten too big”. All the time I hear doomsday predictions about how the tech giants have gotten too big. Doomsdayers tell me how Apple, Microsoft, Amazon, Google, and Facebook make up almost 22% of the S&P 500 alone! When those valuations come back to earth it will surely irreparably crash the market, right?! Well guess what. In 1973, IBM, AT&T, Exxon, Kodak and GM made up 25% of the market. Since then the S&P 500 has returned 16,370% (a CAGR of 11.2%). So big companies at the top doesn’t seem to mean that the sky is falling.
* “Buying Apple/Amazon/Facebook/Tesla/Whatever is a sure thing!” I hear this sentiment all the time too. Why buy the “bad” stocks when you can just by the gold standard companies that are sure things. When you look through these lists, you realize the “sure bet” of one decade may