Lets look at the performance of investing in various companies in the technology space. The companies we have chosen for analysis are among the internet businesses and have a significant impact on our daily lives.
Invest in things you know!
Investing is a passion that we have, alongside technology and analytics. It is actually pretty easy to identify the leading companies in the market. We simply look at the businesses that are regularly and materially used by us, our clients and our competitors. For instance, few of our favorite companies that we buy into are the ones we leverage in our own web software development and analytics projects.
They are Facebook, Amazon, Apple and Google. And for entertainment, our go to channel is Netflix.
Warren Buffett often says, it is extremely difficult to time the market.
Through our own experience, we strongly believe that it is practically impossible to time the market!
However, what is possible, is being able to learn from our experiences and understand the influence such very active and leading businesses are having on our lives.
And by investing in such high growth companies which are making an impact on our everyday lives, we believe that the odds to growth in financial returns can be substantial.
The below analysis shows returns from investing in the, FAANG group (Facebook, Apple, Amazon, Netflix and Google).
For demonstration we've used the last five years data as we enter into this new decade.
As shown in the chart below the returns are really phenomenal!
Investing in any of these companies, practically any of these companies have significantly outperformed the market, which in itself has done exceptionally well.
Investing, for example, in Netflix would have brought us an almost a 250% return. And that compares to a market performance over the past five years of a little more than 50%.
We believe this thesis will hold good and continue to deliver. We recommend to regularly save money, regularly invest in good stocks and build optionality for a significant upside!