At the time of writing, the announcement of significant progress towards a Covid-19 vaccine has stemmed the gains of "Big Tech" and similar companies, most of which form part of the Nasdaq-100 index. Some of these companies were genuine "stay-at-home" winners, like Zoom, while others grew strongly over the lockdown but should sustain much of this momentum, like Nvidia or Microsoft.The Nasdaq-100 is up around 35% this year in dollars, a fantastic return by any measure. Its 10-year compound annual growth rate (CAGR) is nearly 19%, a remarkable source of wealth creation for investors. The S&P 500 achieved a CAGR over the same period of just over 11%.To illustrate how enormous this difference is, $100,000 invested in November 2010 in each index would’ve grown to around $293,000 in the S&P 500 and to almost $550,000 in the Nasdaq-100.2020 accelerated the underlying trends in the world’s leading tech companies and may have driven more demanding valuations in the short term, but there’s no...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now