CMV: Buying individual mega cap stock is Very Stupid

mega cap stocks have almost all their future potential 'priced in'

and their stock rarely beats the market index (like nasdaq100, s&p500)

they mostly follow market movement (their upside is basically same as 'the market' index)

but they have significantly higher downside risk than market index

just look at this earning season. mega cap stocks going -10%, -20% left and right

market etf will never go -10% in a day unless there is imminent, unforeseen, and significant economic drawdown

but when mega cap stocks go up, their upside move is similar/same as to market (like nasdaq100 etf like qqq)

stock picking and buying individual mega cap stock is like dumbest thing ever

(much significant downside risk for basically same as market upside potential)

buying small-mid cap individual stock makes sense because there is a chance their future potential is not baked in to the price and can give you market beating/significantly greater upside for the risk (only if you are really good at stock picking)

so far the only mega cap tech stock that beats the market index is aapl and who knows what their next earning is going to be

I'm not saying small-mid cap individual stock is better buy than mega cap individual stock

it's just that stock picking 'individual mega cap' stock is like worse deal ever