'A Surprisingly Large Amount Of Your Investment Is Divided Across Just 7 Companies' — Former Investment Banker Says She's Changing How She Invests

The S&P 500 has long been a favorite among investors looking to build wealth, with historical annual returns averaging around 10%. But former investment banker Nischa Shah says she’s changing how she invests, and artificial intelligence is a big reason why.

Shah, a qualified accountant and financial educator, recently shared why she’s putting more of her money into global stocks. Her concern isn’t that AI will fail, but that the U.S. stock market has become too dependent on a small group of companies.

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Seven Companies Hold More Weight Than You Think

“When you invest in the S&P 500, your money isn’t split evenly between the 500 companies,” Shah said in a recent video. “In reality, a surprisingly large amount of your investment is divided across just seven companies.”

So, a large portion goes into Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG, GOOGL)), Meta (NASDAQ:META) and Tesla (NASDAQ:TSLA), collectively known as the Magnificent Seven.

All seven are investing heavily in AI. While that could result in substantial growth, Shah worries that excitement surrounding the technology may have pushed some company valuations too high.

She compared the situation to the dot-com bubble of the late 1990s, when investors poured money into internet companies, driving stock prices up before the market crashed.

“Even the most successful technology that changes the entire world can still become overhyped in the short term,” she said.

Shah believes AI will transform industries, but that doesn’t mean every company investing in it can justify its current stock price.

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Why She’s Putting More Money Into Global Stocks

Shah isn’t abandoning the S&P 500. Instead, she’s increasing her exposure to companies outside the U.S.

She pointed to Britain and Japan, which dominated global markets at different points in history, as reminders that no country stays on top forever.

“When you only invest in the S&P 500, you miss out on lots of incredibly successful businesses based everywhere else in the world,” she said. To her, these are companies like Samsung Electronics, Toyota (NYSE:TM), Nestlé and AstraZeneca (NASDAQ:AZN).

Shah currently keeps around 80% of her investments in diversified funds and 20% in individual stocks. For beginners, she suggested limiting individual stocks to around 5% or less because of their unpredictable price swings.

And for investors interested in opportunities beyond traditional stocks, entertainment is another industry attracting investment. Skybound Entertainment, the company behind hit shows “The Walking Dead” and “Invincible,” is opening investment opportunities to the public, with shares starting at $12.50.

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With a 20-year track record, Skybound reports a $700 million valuation and more than 7,000 shareholders. Investors interested in owning a piece of the company can explore its current share offering.

For Shah, the bigger concern is what happens when investments suddenly lose value. She warned that inexperienced investors sometimes panic and sell after a sharp decline, turning a potentially temporary drop into a permanent loss.

That’s why she’s focused on spreading her money across different countries and industries instead of trying to predict which companies will win.

“The point is you don’t need to know exactly what happens to be a successful investor,” she said. “You just need to build a portfolio that can hopefully perform well across lots of different possible scenarios.”

Image: Shutterstock

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Building Wealth Across More Than Just The Market

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EquityMultiple 

For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process. 

Arrived

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Skybound Entertainment

Entertainment franchises can become valuable long-term assets when they successfully expand across multiple platforms. Skybound Entertainment, the company behind The Walking Dead and Invincible, develops original intellectual property that spans comics, television, film, video games, merchandise, and licensing. With more than 250 IPs in its portfolio and a strategy focused on retaining franchise rights while scaling successful stories across media, Skybound offers investors exposure to the growing entertainment and creator economy through a private company rather than traditional public market investments.

American PowerGen

As artificial intelligence drives a surge in electricity demand, reliable power generation is becoming a critical part of the technology ecosystem. American PowerGen is developing natural gas-fired power plants in Texas, a fast-growing market fueled by AI data centers, manufacturing expansion, and population growth. By advancing projects through permitting, fuel supply, and grid interconnection, the company is positioning itself to help meet rising energy needs while offering investors exposure to the infrastructure supporting the next wave of AI and industrial growth.

Bito

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DLP Capital

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FarmTogether

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