“Nobody ever got fired for buying IBM” – there was an old saying that indicated IBM was a reliable and secure choice for investors.
Looking back at history, the largest Top 10 positions are always changing. IBM’s relative position started to decline in 1990, but still managed to remain in the Top 7 position in 2010. Today it stands at the Top 63 position.
Each decade starts with new entrants to the Top 10. The only exception was in the decade following 1960 – all 10 companies remained in the Top 10. For 2020 – we got 5 new entrants (Amazon, Google, Berkshire Hathaway, Facebook, Visa).
It is still uncertain which of these Top 10 companies will maintain their dominance in the US index over the next decade (chart with Top 1 proportions in comments).
Yet, there are better ways to spend your precious time than trying to beat the market. Even the largest endowments are getting exposure via index ETFs in highly efficient markets.
Source: Visual Capitalist
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