A Billionaire’s Rare Admission: “I Made a Big Mistake”
Stanley Druckenmiller, the billionaire founder of Duquesne Family Office, is known for his impressive track record of never losing a quarter in his 30-year career. However, in a rare display of humility, he recently confessed to making a costly error.
The Nvidia Blunder
In an interview with Bloomberg’s Sonali Basak, Druckenmiller revealed that he sold his Nvidia stock too early, a decision he now regrets. “I sold all my Nvidia probably somewhere between $800 and $950,” he said. “I think it’s somewhere around $1300 [per share] on that stock now.” Today, Nvidia’s stock is trading at around $139.59, thanks in part to a 10-for-1 stock split in June 2024 that made it more accessible to a broader range of investors.
A Lucrative Stake
Duquesne had built an impressive stake in Nvidia, with a market value of around $400 million in 2022, making it the office’s top holding. However, Druckenmiller began to shave off his position in 2023 and had fully exited by August 2024. “I own none today,” he confirmed. “It was a big mistake.”
The Reason Behind the Sale
Druckenmiller initially intended to hold onto Nvidia’s stock for years, but when the value tripled in just a year, he thought the valuation was “rich” and decided to sell. Little did he know that Nvidia’s stock would continue to skyrocket in 2024, driven by soaring demand for its AI chips.
A Peek into the World of AI
The demand for AI chips is so high that even billionaire Larry Ellison, co-founder and chief technology officer of Oracle, recently admitted to begging Nvidia CEO Jensen Huang for more GPUs over dinner at Nobu, along with Elon Musk. “I would describe the dinner as Oracle—me and Elon begging Jensen for GPUs,” Ellison recalled.
The Future of AI
Despite his mistake, Druckenmiller still has his eyes on AI and hasn’t ruled out buying Nvidia again in the future. “Were the price to come down, we’d get involved again,” he said. “But right now, I’m licking my wounds from a bad sale there.” Only time will tell if Druckenmiller will get another chance to capitalize on the AI boom.
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