The weight of the largest US companies in the index matches their share of the earnings, so the concentration is justified.

Added to korrents 7 Sept 2026 · How quotes work · Something wrong? Tell us

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• Because stock returns are concentrated in a few winners that are very hard to know in advance, owning the whole index guarantees owning whichever ones turn out to be the drivers. MHMorgan Housel28 May 2024
• The worry that AI's returns are locked away in private companies is overstated: well under a fifth of American market capitalisation is private. PTPhil Trammell4 Jun 2026
• America holds half the world's market capitalisation because the world trusts it, and losing that trust would be a bad day for the United States. SNSatya Nadella12 Nov 2025
• A company priced in the trillions is not thereby overpriced; the test is what revenues and margins that price actually requires. ADAswath Damodaran3 Dec 2025
• Nobody should take on a concentrated, illiquid asset that is correlated with their main source of income, because that same risk is why outsized rewards exist in the first place. NMNick Maggiulli22 Sept 2026

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