Once more on index investingOpen pdf
Once more on index investing
Just five companies – Apple, Google, Microsoft, Amazon, and Facebook – collectively account for 41% of the Nasdaq-100 Index. This index constitutes just the opposite of diversification. And that’s not all: When we take into account the 91 profitable companies represented in the index, their average P/E is more than 43. The Nasdaq-100 Index is in fact a concentrated portfolio at a very high price. The best opportunities today are outside of the main indices, and there are still surprisingly many of them. After a long time we have more ideas than free cash.
Invest with care!
Daniel Gladiš, 21 July 2017