Last week a16z released a very interesting article on the correlation between bay area housing prices and high flyers of the last decade, Google and Apple stock prices. The conclusion was pretty clear as Bay area houses have become cheaper compared to not only Google and Apple stock, but also a tech stock index comprised of top tech companies in the bay area. To note, a lot of these companies provide equity based compensation for their employees who are buying houses in the bay area.
This article extends the thesis to QQQ which is the Nasdaq top 100 index.
The top 5 companies in QQQ are MSFT, APPL, GOOGL, AMZN and FB, all of which has atleast one engineering office in the bay area. These also are prime drivers of the thesis "Software eats the world".
Any common man without the ability to pick the winners in the tech index suggested by a16z could simply invest in QQQ index fund and have reaped the same results.
Disclaimer : The content is provided for information purposes only and should not be used as legal, investment or tax advice. The author bears no liability for how this information is used and the outcome thereof.
No comments:
Post a Comment