Interesting.
So, going forward, will QQQ be a better investment, or is it going to “revert to the mean”? The trend is a very fickle friend.
I read 4 stocks were responsible for most of the gain…
Check.
But maybe the question is whether that will continue.
PS - these gains are dwarfed by crypto gains in just 3-4 years…
how many QQQ stocks of 10 years ago are still part of QQQ today?
Yes, big tech has been taking off.
The Invesco QQQ ETF is an index of the NADAQ 100.
It is over-weighted in technology stocks (48.21%).
That sector, technology, represents 9 of the top ten pieces of the QQQ (NASDAQ 100), with Tesla being the one non tech company in that list:
Invesco QQQ ETF Top Holdings
Stock Share of QQQ
Apple (AAPL) 13.39%
Microsoft (MSFT) 10.76%
Amazon (AMZN) 10.66%
Facebook A Shares (FB) 4.26%
Tesla Motors (TSLA) 3.45%
Alphabet A Shares (GOOGL) 3.42%
Alphabet C Shares (GOOG) 3.31%
NVIDIA (NVDA) 2.88%
Adobe Systems (ADBE) 2.03%
PayPal (PYPL) 1.99%
Here is some more to be said about QQQ.
https://www.investopedia.com/ask/answers/061715/what-qqq-etf.asp
For the long term and with knowing in the long term major use of the capital invested may become needed or if not needed just left to heirs, it is best to keep a portfolio not weighted too much in any one direction and whether using individual stocks or stock index funds to have a wide universe of holdings represented - not to be caught with too much of the portfolio in a trough at any one time - at any time.
Use any excess gains as the only capital to take the bigger risks with, preserving most of the capital in a broad based portfolio.
Using that chart you are looking at the perceived value of innovation. I invest very little in that arena but there’s a reason it has outrun the other parts of the market. The potential returns of innovation are unlimited.
Stock investors get to decide what price represents value on any given day. When they are wrong they pay the price.
Meanwhile people who don’t invest yammer constantly about the “lack of value” in stocks in general and particular. Why do they even care? Because they are Jealous that someone might make money by investing in innovation.
Sure. Now you tell me.
