In the US stock market, investors have been conditioned to hold onto their winners. The Magnificent Seven were so-named because most of them — both individually and collectively — have delivered consistently extraordinary returns for a decade or so. But when your Nvidia Corp. stake sextuples in just a year and a half, it’s probably worth taking some chips off the table, no matter how much you believe in the company’s story. Just ask billionaire Stanley Druckenmiller.
In Druckenmiller’s telling, he entered his Nvidia position in 2022 and expected to hold it for 2-3 years. He decided it was time to cut the stake in late March after the stock went from around $150 to over $900 a share. Here’s how the former George Soros money-manager put it in an interview on CNBC’s “Squawk Box” (emphasis mine):
In the US stock market, investors have been conditioned to hold onto their winners. The Magnificent Seven were so-named because most of them — both individually and collectively — have delivered........