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Old 01-12-2018, 09:48 AM
 
3,271 posts, read 2,179,793 times
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Quote:
Originally Posted by bmw335xi View Post
The S&P 500 is made up of large cap stocks, there is no chance 300 will disappear in 5 years. Also, bad esrnings reports will not violently drop the S&P 500 unlike owning an individual stock during a bad earnings call.

Also, you want to own the company that is being bought out, not the company who is doing the buying in most cases when talking about individual stocks.
https://www.marketwatch.com/story/i-...und-2016-05-09

Okay, maybe 200 companies will go out of business then.

Think about how many companies on that list have only artificial demand from people purchasing index funds.

Also, the average investor is not going to have access to insider trading and be able to purchase the company being acquired. By the time the retail investor is made aware, the company being acquired is already up 50%.

Might as well just go with the trend and buy all big guys that are heavily capitalized in the event of a downturn. I suppose a risk is anti-trust, but that's just my opinion.

I guess one way somebody can figure out what they want to invest in is to compare returns of that portfolio with an index fund, although that will only give them a historical view of what did well.
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Old 01-12-2018, 09:58 AM
 
3,271 posts, read 2,179,793 times
Reputation: 2458
Actually, my bad, the list I posted is WAY out of date.

Turns out that only 10 companies comprise 50% of the value of the S&P.

https://www.zerohedge.com/news/2017-...s-2017-returns

I wouldn't be surprised if at least 200 companies on the S&P 500 would show a downtrend in their graphs if it wasn't for the artificial demand of being picked up in index funds.
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Old 01-12-2018, 10:53 AM
 
36 posts, read 41,324 times
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Thank you everyone for all the great information. I appreciate it.
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Old 01-12-2018, 12:20 PM
 
24,352 posts, read 26,821,734 times
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Quote:
Originally Posted by Jobster View Post
Actually, my bad, the list I posted is WAY out of date.

Turns out that only 10 companies comprise 50% of the value of the S&P.

https://www.zerohedge.com/news/2017-...s-2017-returns

I wouldn't be surprised if at least 200 companies on the S&P 500 would show a downtrend in their graphs if it wasn't for the artificial demand of being picked up in index funds.
Bottom line, the performance will be the same as just buying SPY without the headaches and costs of managing 30 stocks.
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