[paulpauper]

This is the closest thing to investing in Renaissance Technologies. It's too bad there is not a way to get 2-3x leverage version of google. The CAGR since its IPO in 2004 is the same as Renaissance too. Rather than executing millions of trades, the profit is from millions of clicks. Like renaissance , massive statistical analysis is involved, such as tracking click patterns and optimizing the ads.

There is no limit to how high this will go. More and more economic activity is being funneled into these dozen or so mega-tech companies, which is how they are able to grow annual revenues at 20-40%/year despite 3% GDP growth.

[skybrian]

It seems like there should be a limit to the ad market, though? Also, isn't increasing ad blindness a thing? (Even without ad blockers.)

[tonyedgecombe]

I remember reading a paper from LSE that showed that advertising tended to crowd out investment in R&D and that in the long term increased advertising has a detrimental effect on the whole economy.

[timbeccue]

Margin or options would give you leveraged exposure.

[paulpauper]

not as good. margin has high borrow fees and path dependency. options are better but still has a lot of fees, slippage, and needs to be adjusted to target appropriate delta. a 3x fund would make it so much easier and cheaper.

[Rebelgecko]

At least with IB you're looking at margin rates in the 1-2% neighborhood (which is potentially more like 0.6-1% after you take the tax deduction). Depending on your tax bracket, that's actually cheaper than the expense ratios of most (all?) leveraged funds, and let's you avoid the wonkiness that comes with holding leveraged ETFs over time

[potiuper]

FNGO & FNGU

[paulpauper]

only has 10% exposure to google.