It is a good question. My "encore" to Nvidia is buying a company called SS&C Technologies Holdings (SSNC). It is doing to software in the financial services industry what Nvidia did/does to the chip. I am not selling anything to by SSNC - it is being funded as an addition with new purchases. We'll see how it turns out.The question I would pose is where do you end up after 40 years (or whatever) of investing? Will that big Nvidia score put you ahead of other strategies permanently? Or will future strikeouts chip away until you are no better off or perhaps worse off than the VT / VTI and chill crowd?I'm glad I bought Nvidia instead of staying the course. The error of the Boglehead way is that the followers are so focused on avoiding strikeouts altogether that they discount strategies that tolerate them if you also get some grand slams (that can be worth far more than four runs).
I know someone that got into Tesla early and made quite a bit. He then went looking for the next big score and put some money into Rivian. A couple of other people felt his Tesla pick made him a guru and so they followed with their own money. That one turned out to be a big loser. For the Tesla guy, he only put a small portion of the Tesla gains into Rivian so he was ok, totally fine and still way ahead actually, but others who were looking for that first big score lost a decent chunk of money and now were working on digging out of a big hole.
So I don’t know the answer to this and maybe Nvidia gave you enough of a lead that you’ve basically already won the race. I am not convinced it’s a good strategy though even though the outcome was good.
Statistics: Posted by JustGotScammed — Wed Jan 22, 2025 4:12 pm