Earlier quoted context omitted.
Don’t you just end up with a portfolio weighted with half below average stocks? Seems like you could beat this just by buying stuff you’ve heard of. I’m sitting her with my Apple phone, using Verizon internet, burning electricity from a publicly traded utility that probably won’t go broke next week, wearing my Nike shoes and drinking a Coke. That portfolio probably beats your index and requires zero brains or effort.
Over the past 5 years, Nike has gone up by 100%, coke by 20%, Verizon by 15%, and apple by ~125%. The s&p500 has gone up by ~50%. So if you invested 100 in an index fund, you'd have 150, if you invested 100 split evenly in those 4 stocks, you'd have 165. Of course, if you invested in GE, you'd have lost money. And if you invested in Amazon alone, you'd have $500.
If you just buy good solid companies that pay dividends, you do ok.