QQQ vs the world's best hedge funds

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1. Warren Buffett (Berkshire Hathaway) vs. QQQ

$1 million invested in Berkshire Hathaway in 2014 might have grown to around $2.5 million by 2024, based on the company's historical performance. In contrast, the same amount invested in QQQ would have grown to approximately $4.2 million. QQQ's focus on high-growth tech companies provided superior returns with lower volatility than Berkshire's value-oriented approach.

2. Bill Ackman (Pershing Square Capital) vs. QQQ

Ackman's hedge fund has had ups and downs. $1 million invested with Pershing Square in 2014 might have grown to about $2.2 million by 2024, factoring in some high-profile losses. QQQ's $4.2 million return significantly outperforms this, with far less drama and lower fees (QQQ's expense ratio is just 0.20% compared to hedge fund fees often exceeding 2% plus 20% of profits).

3. Dan Loeb (Third Point) vs. QQQ

Third Point's performance has been respectable but inconsistent. $1 million invested in 2014 might have grown to around $2.8 million by 2024. Again, QQQ's $4.2 million return is superior, achieved with lower volatility and without the high fees associated with hedge funds.

4. Ray Dalio (Bridgewater Associates) vs. QQQ

Bridgewater's Pure Alpha fund has struggled in recent years. $1 million invested in 2014 might have only grown to about $1.8 million by 2024. QQQ's performance is more than double this, with significantly lower fees and complexity.

5. David Einhorn (Greenlight Capital) vs. QQQ

Einhorn's fund has faced challenges, particularly due to short positions against tech companies. $1 million invested in 2014 might have actually decreased to about $800,000 by 2024. QQQ's tech-heavy portfolio has clearly been the better choice.

6. Seth Klarman (Baupost Group) vs. QQQ

Klarman's value-oriented approach has yielded steady but unspectacular returns. $1 million invested in 2014 might have grown to about $2.3 million by 2024. QQQ's growth-focused strategy has provided nearly double these returns.

7. Paul Tudor Jones (Tudor Investment Corporation) vs. QQQ

Tudor's Global Fund has had mixed results. $1 million invested in 2014 might have grown to about $2 million by 2024. QQQ's performance is more than double this, with lower fees and less complexity.

8. Jim Simons (Renaissance Technologies) vs. QQQ

While Renaissance's Medallion Fund has legendary status, it's closed to outside investors. Their public funds have had more modest results. $1 million invested in 2014 might have grown to about $2.5 million by 2024. QQQ still outperforms with its $4.2 million return.

9. John Paulson (Paulson & Co.) vs. QQQ

Paulson's funds have struggled since his famous subprime mortgage bet. $1 million invested in 2014 might have decreased to about $600,000 by 2024. QQQ's steady growth presents a stark contrast to this volatility.

10. George Soros (Soros Fund Management) vs. QQQ

While Soros is a legendary investor, his family office doesn't disclose returns. However, estimates suggest $1 million invested in 2014 might have grown to about $2.7 million by 2024. QQQ still outperforms this estimate.

QQQ's performance over the past decade has consistently outpaced even the most renowned money managers. Its focus on innovative, high-growth companies, particularly in the tech sector, has driven superior returns. Moreover, QQQ offers several advantages:

1. Lower fees: QQQ's 0.20% expense ratio is a fraction of the fees charged by hedge funds and actively managed mutual funds.
2. Lower volatility: QQQ's diversified portfolio of 100 leading non-financial companies provides more stability than many concentrated hedge fund portfolios.
3. Transparency: QQQ's holdings are publicly available, unlike the often opaque strategies of hedge funds.
4. Liquidity: QQQ can be bought and sold easily, unlike investments locked up in hedge funds.
5. Anyone can buy QQQ!

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