"He's taking 25% of the money he previously invested in S&P 500 index funds-a meaningful chunk for a self-made millionaire -and moving it into a more diversified set of assets, including: S&P 500 value index funds, which tilt toward companies with lower valuations and less AI-driven hype. Mid-cap stocks, which he believes could benefit if smaller firms catch more of AI's productivity gains. International index funds, offering exposure outside the U.S. tech-heavy market."
"this year alone, the index is up roughly some 16%, and averaged more than 20% in gains over the last three years and roughly 14.6% over the past two decades. In most cases, it's easily beaten investors who try to pick individual stocks like Tesla or Meta. But as Wall Street frets over a possible AI-driven bubble-with voices from "Big Short" investor Michael Burry to economist Mohamed El-Erian sounding alarms-Green isn't waiting around to see what happens."
The S&P 500 has delivered strong returns: roughly 16% this year, more than 20% averaged over the last three years, and about 14.6% over two decades. The index is highly concentrated, with the top 10 companies—including Nvidia, Apple, Microsoft, Amazon, Google, and Meta—making up nearly 40% and investing heavily in AI. Concern over an AI-driven bubble has prompted a reallocation of portfolio exposure: 25% of prior S&P 500 holdings are being shifted into S&P 500 value funds, mid-cap stocks, and international index funds to reduce dependence on megacap, AI-focused winners and capture broader potential beneficiaries.
Read at Fortune
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