- The strongest companies in the S&P 500 may look invincible now, but history shows us this won’t last forever.
- None of the companies in the S&P 500’s 1980 top 10 are still there now.
- Top 10 S&P 500 companies largely underperform the S&P 500 in the long term.
Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Johnson & Johnson (NYSE: JNJ) are the 5 largest holdings of the S&P 500 accounting for 11.74% of the index. The other 495 companies account for 88.26% of the S&P 500 which is a pretty strong imbalance, but that’s how the S&P 500 is formed. Its weightings are based on market capitalization. The bigger the market capitalization, the bigger the weighting in the index. More →