Cathie Wood's experience investing in Nvidia

Source: Daoshuo Blockchain

NVIDIA is one of the traditional technology companies that interests me.

I suggest that you search its growth process online when you have time. I believe everyone will benefit a lot after reading it.

When NVIDIA was first established, no one was optimistic about the field it targeted, because the gaming field it wanted to serve did not have much market at the time (in fact, even if it is put in this field now, it is not particularly "sexy"). The reason why Huang Renxun's angel investors invested in him was largely because of his former boss's face.

After NVIDIA went public in 1999, its stock price performed well and it split its stock several times. From less than $0.5 when it went public in 1999 to $60 at the beginning of 2020, the increase in 20 years was more than 100 times.

Its market has been steadily expanding from the initial gaming graphics card to mining and cloud computing. These markets are also good markets, but they are all markets that are easy to see the ceiling.

Nvidia's stock price really began to soar in 2022. Since that year, its stock price has soared from $121 at the beginning of the year to $1,200 now, and its stock price has soared 10 times in just over two years.

We all know the reasons for this: Nvidia's chips have become an indispensable core resource for AI applications, and AI will penetrate into all aspects of our lives in the near future, and this market is unimaginably large.

Looking at Nvidia's growth history, I think its real transformation is due to the rise of AI. Before that, its status was icing on the cake. Since then, its status has been unique for at least the next few years.

So as investors, even if we missed the previous 20 years, as long as we seize 2022, we can get a lot of benefits.

In fact, for investors of our age, this is exactly what we have experienced personally. If we pay attention to the development of the science and technology field and have independent thinking and judgment, we have the opportunity to seize such a target.

In order to seize the great opportunities brought to investors by the great changes of the times, investors need to have deep insight and keen judgment on the one hand, but also need to have a certain degree of foresight.

Insight and judgment refer to whether investors have the ability to see opportunities and act in time. And foresight refers to whether investors have the ability to look forward after seeing opportunities and taking action, and estimate how long this potential can last - in more popular terms, the possible length of this track.

In this regard, Cathie Wood of Ark Capital's investment experience in Nvidia is worth learning and thinking about.

Cathie Wood bought Nvidia in 2013. In 2015, after the rise of autonomous driving and deep learning, she invested heavily in Nvidia.

In that era, autonomous driving and deep learning had just emerged, and the specific application scenarios and business models were not very clear. It was not easy to dare to invest heavily in such a scenario. From this point, it can be seen that her insight and judgment are quite good.

However, at the beginning of 2023, she sold a large amount of Nvidia, giving the reason that she believed Nvidia might follow in the footsteps of Cisco. In this regard, I think she can be more forward-looking. At least in the next few years, Nvidia's position will be difficult to challenge.

Of course, her investment performance in Nvidia alone is already good enough, but if we look at it from the perspective of project investment, I think there is still room for improvement.

I found a similar phenomenon in Wood Sister's investment in the encryption field. Compared with retail investors who entered this field earlier than her, the point at which she bought Bitcoin was not very cheap, but it was not bad in the long run, but her selling point was a bit confusing, and I didn't quite understand her thinking.

So from Wood Sister's investment experience, I think for the target that you are optimistic about and have participated in, you should pay attention to examining its durability, and don't let go of the potential chips in your hands too early because of lack of foresight, and miss the rare opportunity in vain.