The Standard and Poors 500 Index, a U.S. market benchmark, is quoted daily, with institutional and personal investments mirroring its ebbs and flows. In his 2017 Annual Letter to Shareholders, Mr. Warren Buffet shared findings of a financial experiment he conducted between 2008 and 2017. In this experiment, Mr. Buffet quantified the value in passively investing in the Standard and Poors 500 Index compared to having an energetic style. Passively Investing in the S&P 500 delivered a 2.0% better-annualized return. Launched in 2018, the Fidelity ZERO Large Cap Index Fund (FNILX) speaks to Mr. Buffets’ advice of investing in a “virtually cost-free” index fund. In reality, the FNILX Index Fund is cost-free, i.e., no expense ratio, an index fund that looks almost like the Standard and Poors 500 Index.
Members of the exclusive Trillion Dollar Market Cap Club, Apple Inc, Microsoft Corporation, Alphabet Inc, Amazon.com Inc, and Facebook Inc combined for $259.06 billion and $74.90 billion in quarterly revenues net income in the week ending July 30, 2021. Together these club members comprise little over 20% of the Standard and Poors 500 Index and over 40% of the Standard and Poors 500 Top 50 Index. Regardless of poor stock price reaction based on earnings, the results shared by the trillionaires have defined metrics that provide purpose to stay engaged.