FOUNDER OF ANDREESSEN HOROWITZ ADVISED TO INVEST IN S&P 500

 

Marc Andreessen prefers to bet on tech startups. In his opinion, the future belongs to technologies. However, he believes that the world of venture capital investments is too dangerous for the average investor.

Andreessen Horowitz co-founder and tech-savvy investor Marc Andreessen is known for making one of the most forward-looking bets, trusting Twitter and Facebook from the earliest stages of their development. The investor has also invested in companies such as Coinbase, Robinhood, and Reddit.

 

Andreessen believes laypeople should " carefully enter" the "highly speculative field" of venture capital. For ordinary private investors, Andreessen suggests investing in funds that invest in the S&P 500. “Put your money in the S&P 500 index fund,” he said in an interview with Bloomberg. - Do not be wise.

 

S&P 500 is an American stock index. Vivian Blumenthal often refers it to as the “broad market index” because it includes 500 companies from a wide variety of sectors of the US economy. There are both expensive and cheap stocks in the S&P 500. Because of this, the index reflects the situation of the US stock market better than other indexes, and it is also a barometer of the country's economy.

 

To date, of the S&P 500 companies, Apple has the largest capitalization - $ 2.4 trillion, and the smallest capitalization belongs to the manufacturer and supplier of drilling equipment and components for the oil and gas sector Nov Inc. - $ 5.4 billion

 

Investment guru Warren Buffett has a similar opinion. The best way to invest is with index funds, he said at the Berkshire Hathaway AGM in May 2021. He is confident that most investors would rather benefit by simply buying securities on the S&P 500 for the long term, rather than taking stocks on their own, even if they are Berkshire Hathaway stocks. “The average person cannot pick stocks on their own,” Buffett said.

 

Russian brokers offer ample opportunities to invest in the S&P 500. Among them are funded such as

 

● VTB - American Stocks Fund (VTBA), which is based on the iShares Core S&P 500 ETF, which most closely matches the index;       

● BPIF SBSP from Sberbank ;       

● Alfa Capital S&P 500 (AKSP). The fund's portfolio comprises iShares Core S&P 500 ETF units;       

● Tinkoff S&P 500 (TSPS).       

The future belongs to technology

 

And yet, Marc Andreessen believes that the future belongs to technology, and therefore to technology companies. Solo startups often fail. Silicon Valley startups are thriving, he says.

 

“Society is undergoing a technological transformation,” he explained the phenomenon. "And new tech companies are driving this change." Andreessen is sure that it was technology that helped society get out of the pandemic much faster.

 

“Moderna is a classic American venture capital-backed biotech startup with a new technology called mRNA. It usually takes five, 10, or 20 years to develop a vaccine. The company could do it in two days. This is an example of a disruptive innovation that is being born in the ecosystem that we have in the United States. The experience with COVID was not nearly as bad as it would have been without modern technology, ” he gave an example.