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What are the benefits of holding a portfolio entirely composed of the S&P 500 Index instead...

What are the benefits of holding a portfolio entirely composed of the S&P 500 Index instead of investing only in Alphabet stock? Thank you!

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The biggest benefit of holding a portfolio entirely composed of the S&P 500 Index is the diversification. The Index is exposed only to the systematic risk, which affects the entire market, but the single stock Alphabet is exposed both to the systematic risk and unsystematic risk. The unsystematic risk is the one that affects a single stock. For example, the CEO of Alphabet resigning without notice.

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