Why I don’t invest in the S&P 500？
Why I don’t invest in the S&P 500 $.SPX(.SPX)$ :
- only 25% of the index has a FCF/share growth greater than 15%
- only 26% of the index has a return on capital greater than 12%
- only 12% of the index has both of the above
- I don’t want to own banks, airlines, energy companies, mining companies, utilities, heavy industrials and biotechs
- I don’t want to own anything discretionary
- I don’t want to own alcohol, tobacco or gambling stocks
- I don’t want to own anything highly leveraged or highly cyclical
I see companies with high growth rates ahead of them as cheap, and low growth rates ahead of them as expensive.
What would you add?
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