RSP really hasn't done well, so far at least.

How to you figure?
It's true that the Gigacaps have just had a huge run up in the last quarter.

But, if I'm not mistaken, RSP's performance since inception 22 years ago has beaten the S&P for every single end date up till the end of 2025, and in most rolling five year stretches too, and in data going back a century. And that's all accomplished with a tiny fraction of the risk. (largest position 1/35 as big as in the S&P 500, so permanent capital risk from rare blowups is minuscule by comparison).

No, sorry, the cap-weight S&P 500 is for suckers these days. It's hugely dominated by a tiny number of firms, with the top 5 being over 1/4 of the fund and top 10 begin over 1/3. If you know what to bet on those few firms, what the heck are you doing in an index fund? If you don't know what to bet on those few firms, what the heck are you doing having a concentrated portfolio in them?

As Mr Buffett has noted, the uninformed investor should not have a concentrated portfolio. Don't let someone else use up your few ticket punches.

Jim

Berkshire Hathaway FAQ

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