Here at Sav HQ, we keep hearing the same worry: “The Magnificent Seven – Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), and Meta Platforms (NASDAQ: META) – make up 33% of the S&P 500! That’s too much concentration!”[1]

But here’s what the doom-and-gloomers are missing: These aren’t really seven companies. They’re seven holding companies controlling 800+ businesses.

Think of it this way: When you own shares of Berkshire Hathaway, you’re not just buying Warren Buffett’s favorite railroad. You’re getting exposure to insurance, energy, retail, manufacturing, and dozens of other sectors through Berkshire’s portfolio companies.

The Magnificent Seven work the same way – just with a tech twist.

 The Empire Strikes Back (Against Concentration Fears)

Let’s crunch some numbers that’ll make you smile:

– Alphabet: 270+ acquisitions including YouTube, Waze, DeepMind, and Fitbit

– Microsoft: 250+ acquisitions including LinkedIn, GitHub, and Activision Blizzard

– Amazon: 105+ acquisitions including Whole Foods, Twitch, and MGM Studios

– Apple: 100+ acquisitions including Beats, Shazam, and numerous AI startups

– Meta: 95+ acquisitions including Instagram, WhatsApp, and Oculus

– Nvidia: 20+ strategic acquisitions like Mellanox

– Tesla: 6 highly selective purchases

Total empire size: 800+ individual businesses

When you buy an S&P 500 index fund, you’re not putting your eggs in seven baskets. You’re getting a diversified portfolio spanning everything from social media to grocery stores, cloud computing to autonomous vehicles.

The Acquisition Arms Race Continues

The empire-building peaked during 2020-2021, with these companies going on shopping sprees that would make even the most enthusiastic Black Friday shopper jealous.

Microsoft acquired 14 companies in 2021, including the $75.4 billion Activision Blizzard deal that transformed them into a gaming powerhouse.

We believe: These companies aren’t resting on their laurels. They’re constantly evolving, acquiring, and diversifying – which is exactly what you want from long-term holdings.

Diversification by Stealth

Here’s where it gets really interesting- . Each “Magnificent Seven” company has quietly become a diversified conglomerate

Apple isn’t just the iPhone company anymore:

– Services (App Store, iCloud, Apple Pay): 20% of revenue[1]

– Wearables (Apple Watch, AirPods): Growing double-digits

– Mac and iPad: Steady cash cows

– Original content: Apple TV+ competing with Netflix

Amazon has tentacles everywhere:

– AWS Cloud: 70% of operating income[4]

– Prime Video: Streaming wars participant  

– Whole Foods: Your weekend grocery run

– Advertising: Billion-dollar growth engine

Microsoft touches every corner of business:

– Azure Cloud: Fastest-growing segment

– Office 365: Recession-resistant subscriptions

– LinkedIn: Professional networking monopoly

– Gaming: Xbox and now Activision’s empire

The pattern repeats across all seven companies. They’ve systematically diversified through acquisitions while maintaining their core competencies.

The Tariff Reality Check (Because We Keep It Real)

Now, we wouldn’t be proper Savrs if we ignored the risks. Trade tensions and tariffs are real concerns:

– Apple: 90% of iPhones manufactured in China

– Amazon: Heavy reliance on imported goods  

– Nvidia: Export restrictions affecting China sales

But here’s the thing: Great companies adapt. Apple is shifting production to India. Amazon is reshoring operations. Nvidia is building U.S. manufacturing capacity.

What is the Implication For Your Long-Term Wealth

For new Savrs building their first portfolios:

Your S&P 500 index fund gives you instant diversification across 800+ businesses through these seven names alone. That’s before we even count the other 493 companies in the index!

For seasoned Savrs protecting their nest eggs:

These companies provide defensive diversification across multiple sectors while maintaining growth potential. Think of them as “dividend aristocrats” for the digital age.

The Sav Bottom Line

The next time someone frets about S&P 500 concentration, you may share these facts with them:

1. You’re not buying seven stocks – you’re buying stakes in 800+ businesses
2. Each company is internally diversified across multiple revenue streams
3. They’re constantly acquiring new capabilities and market positions
4. They have the resources to adapt to changing conditions

As we keep saying- don’t fight the trend, embrace it strategically:

– Core holding: S&P 500 index fund (captures the natural 33% weighting)

– Satellite positions: Consider individual positions in your favorites

– Geographic diversification: Add international exposure for balance

Remember, fellow Savrs: The best time to plant a tree was 20 years ago. The second-best time is now. These “Magnificent 800” companies are still in their growth phase, still acquiring, still innovating.