Everything Money on $QQQ (Nov 10, 2026)
QQQ offers the best growth exposure, since its high-return-on-capital companies justify premium valuations and tech should lead long-run gains if bought at reasonable prices. But these names are overhyped and could collapse, so the speaker has not started buying a large position and will definitely add QQQ only after a sharp drop to a reasonable price. Even buying at the 2000 peak through a drop of 80% or more returned more than 14 or 15% a year.
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Last but not least, the QQQ Index, the Nasdaq 100 Index. Guys, this is the perfect place to invest in growth. QQQ includes the 100 largest non-financial companies on Nasdaq, making it a strong indicator for technology companies.
Companies like Nvidia, Meta, Amazon, Microsoft, Apple, Google, and Tesla are some of the most innovative and fastest-growing companies in the world.
The expense ratio is slightly higher at 0.18%, but it is still very low compared to mutual funds. What you get are companies that are able to generate high returns on the money invested in their businesses.
This is called "high returns on capital". So what does that mean? Let's assume that Company (A) achieves a 10% return on its cash investment, while Company (B) achieves a 30% return.
If Company A invests $1 billion, it will receive $100 million in additional annual income, which is equivalent to 10% of $1 billion. And that's not bad. Company (B), on the other hand, invests one billion dollars and achieves a return of 30%, or 300 million dollars annually.
If the two companies continue in this manner, which one will be the better one? It is clearly company (B). Therefore, company (B) deserves a higher price. For this reason, QQQ shares are often sold at a higher valuation, as they include faster-growing companies that are able to increase their profits at a faster pace and at a lower cost.
The most important advantage is that when you pay a reasonable price, you will make huge profits.
On the other hand, these are companies that are overrated, speculated on, and inflated by the media, and when things go wrong , they may collapse badly. For this reason, I am not currently investing a large part of my money in it.
Actually, I haven't started buying them yet. I will use it strategically, but here's some good news. In 2000, if you had started buying QQQ shares at the height of the tech bubble in March of that year, you would have seen them drop by 80 or 82% before reaching their lowest point .
But if you had continued buying from that peak until today, you would have achieved an annual return on your money of more than 14 or 15%. Look at that! Investing at the peak before a drop of 80% or more, and continuing to do so, achieves a performance that far exceeds the market's performance.
This is the power of long-term investing and not trying to predict market timing.
Once QQQ's stock price drops sharply and becomes reasonably priced, I will definitely add it to my investment portfolio without a doubt, because the technology sector will lead the gains in the market in the long run if it is bought at reasonable prices .
If you are young, you can wait until the market volatility subsides. So perhaps you should start with QQQ stock along with the rest of your investments.
And if you add some QQQ shares to that, you will be able to make up for the difference you lost during 12 years of not making any gains.
Therefore, QQQ shares are often sold at a higher valuation, as they include faster-growing companies that are able to increase their profits at a faster pace and at a lower cost.
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