11-06-2021, 12:25 AM
Owning the best workforce
<!-- SC_OFF --><div class="md"><p>It recently clicked with me that owning a total stock market fund like VTI is akin owning the entire workforce. Well, not entire - a huge portion of it. VTI has around 4k companies in it. With this type of fund, it doesn't matter what companies have the best labor force because you are owning the entire workforce anyway.</p> <p> </p> <p>From this you can assume S&P500 are the companies that HAVE the best workforce no? It is literally showing in their giant market caps. And the S&P500 is self-healing, meaning bad companies get replaced. </p> <p> </p> <p>So what's the point of all of this? Its a thought experiment that you are not owning companies with VTI and SPY - you are owning the entire workforce, and the best workforce respectively.</p> <p> </p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/codeslinger06"> /u/codeslinger06 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/qnaxh9/owning_the_best_workforce/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/qnaxh9/owning_the_best_workforce/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>It recently clicked with me that owning a total stock market fund like VTI is akin owning the entire workforce. Well, not entire - a huge portion of it. VTI has around 4k companies in it. With this type of fund, it doesn't matter what companies have the best labor force because you are owning the entire workforce anyway.</p> <p> </p> <p>From this you can assume S&P500 are the companies that HAVE the best workforce no? It is literally showing in their giant market caps. And the S&P500 is self-healing, meaning bad companies get replaced. </p> <p> </p> <p>So what's the point of all of this? Its a thought experiment that you are not owning companies with VTI and SPY - you are owning the entire workforce, and the best workforce respectively.</p> <p> </p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/codeslinger06"> /u/codeslinger06 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/qnaxh9/owning_the_best_workforce/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/qnaxh9/owning_the_best_workforce/">[comments]</a></span>Kind Regards R