Your article is extremely biased. You forgot to mention that if you held the S&P 500 index, and a stock was dropping outside the top 500 the stock that took its place would be captured in the index. Thereby you wouldnt need to find the next Amazon or Apple the index would do it for you.
David. Thanks, but that is not the issue. The question is at what weight? The index isn't forward looking, and this is the problem - there is no set-and-forget for value capture, as my colleague Anshu Sharma explained here on Livewire: https://www.livewiremarkets.com/wires/amazon-google-repor...
I think the better option is to find customized ETFs (eg. MOAT , QUAL, HACK) . Lower fee than a manager and still get some kind of active beta returns.
Whether etf or active, the better option is to choose the product which provides the higher risk adjusted performance, net of fees.
whilst I do like high quality active managers that outperform the index consistently, there are just too few of them, hence the popularity of ETFs which have much lower fees. Fund managers only have themselves to blame for it. Didn't Warren Buffett recommend that most people are better off just holding the S&P500 index ?