Ray Dalio, the billionaire founder of Bridgewater Associates, has been a long-time admirer of David Druckenmiller's investment strategies. Druckenmiller's NVDA stock performance has been impressive, with a significant return on investment.
Druckenmiller's investment in NVIDIA (NVDA) has been a highly successful one. He has a long-term perspective, often holding onto stocks for years.
Stanley Druckenmiller's Investment Moves
Druckenmiller is a professional investor with 30 years of experience and has never lost a quarter in his career.
He sold all his Nvidia stock in 2023, but now thinks it was a big mistake, with the stock price being around $1,300 at the time of the sale.
Druckenmiller still has designs on AI and hasn't ruled out buying Nvidia in the future, saying "Were the price to come down, we'd get involved again."
He trimmed his exposure to Nvidia stock in late March 2023, taking some profits off the table when the stock went from $150 to $900.
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Druckenmiller's family office, Duquesne Capital Management, bought Nvidia shares in late 2022, at just $150 a share, on the back of a recommendation of one of the firm's younger partners.
He increased his position substantially after ChatGPT was released to the public, but now thinks AI might be a little overhyped, but underhyped long term.
Nvidia is scheduled to disclose its first-quarter earnings report on May 22, and analysts are looking for a big boost across the board.
Druckenmiller believes the big payoff regarding the AI narrative might be four to five years from now, and not in the near term.
Broaden your view: Is Nvda a Good Long Term Stock
Nvidia Stock Performance
Nvidia's stock price increased by 14% in the fourth quarter after Druckenmiller sold it.
This means Druckenmiller could have earned a bit more if he had held onto Nvidia stock for just a quarter longer.
Nvidia's stock price declined by 29% from the start of the year through its lowest point last month.
Holding onto Nvidia stock through the first quarter of this year would have allowed Druckenmiller to ride out this decline.
Related reading: Nvda 5 Year Forecast
Billionaire Investor's Reaction
Stanley Druckenmiller, a billionaire investor, recently shared his thoughts on Nvidia, stating that he made a "big mistake" by selling the stock too early.
He initially thought he'd hold Nvidia for years but ended up selling it between $800 and $950 per share, only to see it rise to around $1,300 per share.
Druckenmiller has a 30-year career with no losses in a single quarter, but this time he's "licking his wounds" from a bad sale.
Despite his mistake, Druckenmiller still has designs on AI and hasn't ruled out buying Nvidia in the future, saying "were the price to come down, we'd get involved again".
He's also noted that the AI narrative might be overhyped now, but underhyped long-term, which is an interesting perspective given his initial enthusiasm for the stock.
Druckenmiller cut his stake in Nvidia earlier this year, taking some profits off the table when the stock went from $150 to $900, and he's been candid about his decision-making process.
He's also acknowledged that he's not Warren Buffett, who owns stocks for 10 or 20 years, and that he wishes he had a similar approach to investing.
On a similar theme: Nvda 10 Year Return
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