QQQ has compounded at roughly 19.7% annually over the past 15 years. From everything I’ve read and observed, consistently beating an index like QQQ over the long term is extremely rare, probably fewer than 5% of investors. What percentage of the population do you think can actually do it? And what is your personal experience?
From my personal experience, I spent almost a decade picking individual stocks. I made big gains from time to time, but when I calculated my compounded returns, I still ended up losing to the index. I’ve found that keeping 80% in index funds and 20% in individual stocks for fun is the best balance for me. It helps manage my FOMO and lets me participate in occasional big winners which may sometimes be more luck than skill while keeping most of my money compounding steadily.
For me, the most reliable path to building massive wealth is simply staying invested in the index.