The lion's share of the market's returns over the last century has come from a small handful of equities, and most of them have been large-cap stocks. This might seem surprising, but the numbers don't lie.

The current tech giants -- Apple, , Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla --are just the latest examples of this long-term pattern. These so-called "Magnificent Seven" stocks have all handily outperformed the S 500 since 2013 in terms of total return on capital (assuming dividends were reinvested and before taxes).

However, picking individual stocks in this space comes with unique risks. Several macro factors outside of a company's control can affect its performance from year to year, such as regulatory changes, competitive threats, technological disruptions, and shifting consumer preferences.

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Source Fool.com