North Florida residents might be familiar with the name Stanley Druckenmiller, the famed hedge fund manager and founder of Duquesne Family Office. However, they may not be aware of a recent investment hiccup he confessed to during a conversation with Bloomberg’s Sonali Basak.
Druckenmiller’s “Big Mistake” with Nvidia
Despite being a billionaire investor who hasn’t lost in a single quarter throughout his 30-year career, Druckenmiller admitted to selling off his Nvidia shares too early. This move, which he described as a “big mistake,” occurred after he anticipated holding the stock for years.
“I’ve made so many mistakes in my investment career; one of them was I sold all my Nvidia probably somewhere between $800 and $950. I think it’s somewhere around $1300 [per share] on that stock now,” Druckenmiller confessed.
Currently, Nvidia’s stock is trading at about $139.59. The company executed a 10-for-1 stock split in June 2024, making it more accessible to a wider range of investors, especially those with smaller accounts.
A Brief History of Druckenmiller’s Nvidia Investment
- In 2022, Duquesne Family Office owned approximately $400 million in Nvidia stock, making it the office’s leading holding.
- Druckenmiller began cutting off his stake in 2023.
- By August 2024, Druckenmiller had fully exited his position in Nvidia’s stock.
“I own none today,” Druckenmiller confirmed, “It was a big mistake.”
Why Did Druckenmiller Sell His Nvidia Shares?
Druckenmiller initially planned to hold the stock for an extended period. However, when the value tripled within a year, he believed the valuation was “rich.” Consequently, Nvidia’s stock skyrocketed in 2024, primarily driven by the soaring demand for its AI chips.
Billionaire Oracle cofounder and chief technology officer Larry Ellison recently admitted that he treated Nvidia CEO Jensen Huang to dinner at Nobu, along with Elon Musk, to request more GPUs.
Ellison humorously described the dinner: “I would describe the dinner as Oracle—me and Elon begging Jensen for GPUs. Please take our money. Please take our money. By the way, I got dinner. No, no, take more of it. We need you to take more of our money please.”
Druckenmiller’s Future Plans
Despite the regrettable Nvidia sale, Druckenmiller has not lost interest in AI. He hinted at the possibility of investing in Nvidia again in the future, should the price drop.
“Were the price to come down, we’d get involved again,” Druckenmiller stated. “But right now, I’m licking my wounds from a bad sale there.”
As local Suwannee County residents, these financial insights from high-profile investors like Druckenmiller serve as valuable lessons. They shed light on the complexities of investment decisions and remind us of the importance of careful, long-term planning.
