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Respecting @stillers request we start a new thread to discuss NVDA etc here goes

My favorite quote from Scott McNeely CEO of SUN

"At 10 times revenues, to give you a 10-year payback, I have to pay you 100% of revenues for 10 straight years in dividends. That assumes I can get that by my shareholders. That assumes I have zero cost of goods sold, which is very hard for a computer company. That assumes zero expenses, which is really hard with 39,000 employees. That assumes I pay no taxes, which is very hard. And that assumes you pay no taxes on your dividends, which is kind of illegal. And that assumes with zero R&D for the next 10 years, I can maintain the current revenue run rate. Now, having done that, would any of you like to buy my stock at $64? Do you realize how ridiculous those basic assumptions are? You don’t need any transparency. You don’t need any footnotes. What were you thinking?"

NVDA Price to Revenue is three or four times SUNW then

This quote is from the Felder report

I would post the stock chart image if I knew how. It is in the link. ( at 72 I must admit I am a bit technologically challenged)

Bottom line: "a chart of Sun Micro from 1996 to 2006. It started around $5 ran up to that $64 Scott mentions and then fell right back to $5. And you would think this might serve as a cautionary tale for investors today."


  • NVDA makes chips. Lots of companies make chips.

    Look at where Intel is today compared to where it was a few years ago.
  • BTW, Scott McNealy (69) has been laying low & spending quiet time with family, friends and personal hobbies. After he left as the CEO of Sun Micro in 2006 at age 52, and its Board in 2010 at age 56, he dabbled with some startups, but nothing came of those.
    Interesting that Vinod Khosla recruited 28-yr old Scott to Sun Micro in 1982, and VK still remains very active in venture-capital.
  • SUNW is still an active ticker symbol, but it is for a solar company now. Lost 26% today because I posted on it! Down to 6 cents from $20 a share in 2021


    Remind me again how to post images, if you have a minute. Thanks for wiki link. I had forgotten what a right winger he is. Why does that seem to go hand in hand with techno billionaires?

  • If I am a cautious investor then maybe I should reduce my holdings in NVDA. I also have AVGO, another chip maker with other parts to its business. Maybe I don't need both?
  • edited February 7
    Image Posting at MFO

    @sma3, copy (with right-click) the image-address (but not other URLs) & use the MFO Image-Tool (3rd from right) to post.

    If an image doesn't have linkable address (e.g. screenshots or other pics on your PC), use free image-hosting sites such as, etc, to establish image-link, and then follow the above steps.

    Practice 1-2 times & you will never forget it.
  • edited February 7

    Did it work?

    edit: Guess not.
  • @MikeM, is this what you were trying to post?

    Image ADDRESS (should have .jpg or .png ending)
  • Got it!
  • Bigger investing by fundamentals archaic? Isn't it all about sentiment and flow from cap weighted index funds driven by 401ks and thus driven by white collar professional class investing every paycheck?

    Or is this financial system which is twice as large as the economy too big to fail? No politician will allow a large draw down on their watch because we'd have an epic depression...think of the pension funds that would collapse etc. That and now I'm being serious is the difference now vs back in the sun micro hey days....

    So are we all just fools not to slide all the chips in?

    By that meaning invest in NVDA, CRWD, MDB. And some cash to buy some smokes and booze...

    Who knows??
  • @Baseball_Fan

    An ETF WSKY let you do both but it was shuttered. Now VICE is available and apparently holds NVDA too!
  • @Baseball_Fan might want to take a listen to Josh Brown on today's CNBCs Halftime Report via podcast or other means. He did the best job I've recently heard describing the difference between NVDA and the bunch. And there IS a significant difference.

    BTW, while I don't own NVDA or any of the MAG 7 directly other than in various funds, I did pick up AVGO in spring of 2020, and it's now my 2nd largest holding....
  • edited February 7
    During the downturn in 2021-22, I bought a small amount of NVDA. After trimming around $350 to take out initial purchase amount, it grew up a lot since then. M* portfolio is showing I am up 480%. However, it is still relatively small %age my overall portfolio, which consists of 80% mutual funds and 20% stocks. All the stocks were accumulated since 2021, and most of them growth stocks including speculative ones like SOFI and PLTR. I have been thinking of selling some of them completely or trimming these high flyers including NVDA, but not yet done it. (NVDA, NFLX, CRWD, DDOG, ASML to name a few).

    One of my mantras for buying so many of them when they were irrationally punished during 2021-22 period. My average price for NVDA is $122. I was lucky to buy NFLX around $170. I was not bold enough to buy Meta below $100, but average price is not bad at $175.
  • Peter Lynch:
    “Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.”
  • stillers said:

    Peter Lynch:
    “Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.”

    Worth repeating!

  • BaluBalu said:

    stillers said:

    Peter Lynch:
    “Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.”

    Worth repeating!

    Over and over again! Similar battle being contested on another board over FSELX with its 24% allocation to NVDA.
  • That voice you hear when all is quiet says reduce NVDA to a smaller %. I will listen to it.
  • Our NVDA exposure is primarily derived via FSELX. When FSELX exceeds 10% of our port, we shave it back to 10% and start over. It's a vicious beautiful cycle!
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