We have all heard about Silicon Valley Bank in the last several weeks.
But have you heard of a company called Insulet?
I bet you have not. I had not either.
Turns out Insulet replaced Silicon Valley Bank (SVB) in the S&P 500.
This is an Acton, Massachusetts based fast-growing innovative medical device company improving the lives of people with diabetes and other conditions. It is also listed on the NASDAQ as PODD.
There are so many companies that we indeed don’t know about (and mind you this is a large company). The point is that if one goes, another one quickly takes its place in the stock market index. And then the new one automatically becomes a part of your mutual fund investment.
Isn’t this powerful? This is the only free lunch in finance. And the best part is that all this happens without you even having to do anything.
P.S. Read one of my earlier posts “The Only Free Lunch in Finance” if you need to jog your memory about the concept.