Azeem Azhar

Over 15 years, it's returned about 17% a year, nearly 23% over the recent three years as the world has got excited about AI and this new technology.

So

What does 17%, that 15-year track record, mean?

It means that roughly every four or five years, if you'd put your money in the NASDAQ, it would double.

Not adjusted for inflation, but just in sort of nominal terms, it would double.

That's pretty punchy.

With that punchiness comes some volatility.

Prices on the NASDAQ bounce up and down.

Nothing in life comes for free.

You get the return of the NASDAQ.

You get a pretty excitable stock index.

So if you buy an index like a NASDAQ, which you can do in many different ways, you get a bit of diversification and every single company in that index is a public company subject to the governance and reporting of public companies.

And if you bought that index, it's immediately liquid.

You can take your profits and losses whenever you like.

You know, you could sell when it's a bit high so you could go off and treat yourself to whatever you fancy.

Private companies can't sell their shares.

You can't sell those shares as easily.

They are somewhat illiquid and they don't have the same infinite information rights or governance controls as you're forced to do on the public markets.

So all of that should add what would consider a risk premium.

You know, you can't be buying open AI when you could be buying the NASDAQ because, you know, you get the benefits of that diversification and sort of public governance.