One of my big investment takeaways from learning from Warren Buffett and Charlie Munger is to wait for your pitch. Unlike baseball, when you’re investing, you don’t have three strikes. You don’t have to swing, and you don’t have to try to make something happen every at-bat.
In the stock market, it’s perfectly fine to just sit there and watch every pitch go by. You can even let huge winners pass you by—and that’s OK! As Munger wisely put it, “The stock market is a no-called-strike game. You don’t have to swing at everything—you can wait for your pitch.”
NVIDIA is up approximately 165% this year and is currently valued at over $3 trillion. If you’ve been watching and sitting on the sidelines like I have, you’ve seen your investment neighbors do very well. This is awesome! Be happy for them, but don’t be envious.
As Buffett likes to joke, “Of the seven deadly sins, envy is the worst because it’s the only one you could never possibly have any fun at. Gluttony, on the other hand, can be a lot of fun!”
In my view, envy is where investors make big and costly mistakes, and I’m trying not to make one myself with NVDA. The idea of caring that someone is making money faster than you is one of the deadliest traps. Buffett often says, “The trick is, when there is nothing to do, do nothing.” It’s easy to feel like you’re missing out, but rushing into an investment out of envy or fear of missing out can lead to regret.
Buffett also talks a lot about Temperament over Intellect when it comes to being a successful investor. He says, “The most important quality for an investor is temperament, not intellect.” By passing on NVDA, I’m trying to maintain the right temperament and keep envy in check.
I know enough about AI to believe that it is not hype. AI will change the way we work and live. That said, I have no idea if NVDA is a $3 trillion, $6 trillion, or $2 trillion company. If it gets to a $6 trillion market cap—how long can it stay there? In 10 years, will NVDA still be the winner?
The answer to all of these questions may very well be in NVDA’s favor—I just have no idea!
For now, I’ll continue to let it pass me by and watch my investment neighbors hopefully do very well—and I’ll be happy for them!
*Quick disclaimer here- none of this is investment advice! I know very little about investing! Don’t listen or make decisions on anything that I say. Just trying to improve and get a little better every day.