The last decade Nasdaq had a huge performance, roughly 400% returns. S&P 500 had about 200% returns. There is a lot of overlap, basically tech outperformed.
My main brokerage account is heavily weighted towards tech, my retirement and 401k accounts are boring VTSAX or S&P500 - 10% returns will get me to my retirement goals. Obviously in hindsight I wish I had higher tech weight in my retirement accounts since I do tend to believe more in those companies.
The business model of heavy tech companies are in many ways superior. You can generate massive margins with a smaller labor and capital investment given that software is built to scale.
However, now you have to pay a big premium for tech. Really for any company to succeed in the 21st century they need to be able to harness and utilize modern technology, so even if a company isn't 'tech' they need to be good at technology. It feels like many up and coming tech companies are being priced as next FANG potential when this probably not the case.
Do you expect another decade of tech outperformance?
Submitted February 06, 2021 at 03:18PM by m4329b https://ift.tt/2Lx9CEo
