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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", sykesix asked the members: "What do you do if you arrive early at movie besides go to the snack bar?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: mungofitch ✹✺🐝🐝🐝 SILVER
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Number: of 22989 
Subject: Re: OT: S&P versus T-Bills?
Date: 07/09/24 9:07 PM
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For NDX100 since 1972, the marketcap has performed better than the equal weight, not worse. Note, for the SP500 this is reversed. The SP500 equal weight has performed 2 times better than the marketcap.

True, but the largest weighted firms in the Nasdaq 100 have not (historically) been pretty much the exact same list as the largest market cap listed firms in the US as is currently the case give or take, so the general rule may still apply these days when it's almost precisely the same top N. Or not...it's unpredictable, just a statistical skew.

As an aside, just a reminder that QQQ isn't market cap weighted. Which is sometimes better, sometimes worse, but yet more randomness.

To me it's plain as the nose on your face that it makes no sense to buy a fund which is hugely overweight a few stocks unless you think you personally have a very good reason to be overweight those specific stocks at their current valuations. I guess 2001 is a long time ago--it's a dwindling population of current investors who remember their investments' behaviour the last time the market was this concentrated in a few "can't lose at any price" names : )

Jim
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This community has written 22,499 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
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