1Yr·

Individual tech stocks vs. NASDAQ-100

Sold the individual position directly before the Microsoft $MSFT (-0.23%) sold the individual position, as I don't see any above-average profit from Microsoft in the long term. I am now also considering Apple $AAPL (+0.28%) and $NVDA (+1.51%) as soon as they get close to their 52W highs again (which may take a while for the latter) and put the whole thing into a distributing NASDAQ 100 ETF. $EXXT (+1.29%) in a distributing NASDAQ 100 ETF. Only $GOOGL (-1.5%) is the only one I would like to keep, because I really do expect a lot of further development there and the product portfolio is the most broadly diversified.

What is your long-term experience with individual tech stocks compared to the NASDAQ? Do the Big 7 beat the broadly diversified index in the long term? Does it always depend on the current situation (in which, in my opinion, the really big ones in particular are overvalued)?

8 Comments

GHF@GHF

1Yr

If you see no prospects for $MSFT, $AAPL, $NVDA etc. and no longer want them in your portfolio, your idea makes little sense to me. The Nasdaq is dominated by the Mag7 and these 3 positions alone make up 25% of the Nasdaq ... you are bringing these companies back into your portfolio through the back door, so to speak.

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KarlMags@jjjjjonas

1Yr

@GHF I continue to see growth in the three companies, but I doubt that they will grow *above average*. So, let's say hypothetically that the NASDAQ-100 rises by 30%, but Microsoft, Apple and NVIDIA only have a combined weighting of 25%. In that case, I will make a significant gain with the individual stocks, but less than would be possible as an alternative.

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Vincent@VincP3

1Yr

depending on how old you are, but if you invest for another 50 years, you can say goodbye to strong returns with this plan. I have beaten the ETF you mentioned by more than three times every year since 2021. However, nobody knows what it will look like in 5-10 years' time

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SathosiRuffy@SathosiRuffy

1Yr

@VincP3 But you also have to say that your portfolio consists of 60% NVIDIA. This means that NVIDIA has beaten the ETF mentioned above by 3x (without having done the math). Whether a portfolio should consist of such a big lump would be a different discussion. But his approach is probably more in the direction of more diversification and still an excess return

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Maxi V.@Maxi_von_Zehmen

1Yr

I can recommend the new video by Timo Baudzus.
Lisa also talks a bit about the topic (towards the end of the interview)

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schlimm.@schade

1Yr

why $EXXT and not $EQQQ?

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KarlMags@jjjjjonas

1Yr

@DoppelSchlechtMinus I started with that one back then without giving it much thought, because ING had suggested it to me as a savings plan. Are there any major advantages to the other one you suggest?

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schlimm.@schade

1Yr

@jonas189 Nothing serious, but it has performed slightly better than iShares almost every year so far. But if you already have it, there's no reason to switch. I was rather wondering whether I was overlooking an advantage with the other one.

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