10 Stocks VS the S&P 500. Which strategy wins?

By Kevin Jul 25, 2023 #10 stocks #megacaps #s&p 500

Imagine 10 stocks having a greater return with very little difference in volatility or downside risk. Well, that is what I have found. The large mega-caps like Apple, Microsoft, and Alphabet have outperformed the S&P 500 for most of the years I looked at.

Diversification is supposed to reduce risk but more recently 10 stocks is all that is needed and the risk is about the same as the S&P 500.

Will this trend continue in the future?

I tested selecting the top S&P 500 stocks in the past and simply holding them to the present. That way we don’t have the advantage of hindsight.

Watch the video to see the results.

By Kevin

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