VOO ETF: Stay Forward-Compatible With The S&P 500 (NYSEARCA:VOO)

Core Insights - The Vanguard S&P 500 ETF (VOO) is highlighted as a strong investment option, particularly in light of rapid advancements in AI technology [1] - The long-term performance of a stock is closely tied to the underlying business's return on capital, with examples illustrating the impact of different capital returns over extended periods [1] - The effect of taxes on investment returns is emphasized, showing how tax treatment can significantly alter the effective annual return over long holding periods [1] Investment Analysis - A business that earns 6% on capital over 40 years will yield similar returns for investors, regardless of initial purchase price [1] - Conversely, a business with an 18% return on capital over 20 to 30 years can provide substantial returns even if purchased at a high price [1] - The difference in effective returns due to tax treatment can be substantial, with a 3.5% difference in annual returns over long periods being particularly impactful [1]