Part 9/11:
Diversification remains paramount. One approach is to invest through broad-market index funds like the S&P 500 or NASDAQ, which inherently include these giants but also diversify across many other sectors and companies. Alternatively, equal-weighted ETFs can help mitigate concentration risk, providing exposure to these top stocks without overly emphasizing their influence.
If focusing on individual stocks, prudent investors should conduct thorough analysis of each company's fundamentals, growth prospects, valuation metrics, and competitive positioning. Recognizing that some stocks like Nvidia might be overvalued based on traditional valuation multiples, investors should weigh growth expectations against valuation risks.