Renowned hedge fund manager and Duquesne Family Office founder Stanley Druckenmiller recently acknowledged that he is not at the same level as Berkshire Hathaway’s Warren Buffett, often referred to as the Oracle of Omaha. Throughout his 30-year career, Druckenmiller has maintained an unblemished record of quarterly performance. However, he admitted to making a “significant mistake” by selling his shares in Nvidia prematurely, despite his initial intention to hold them long-term. During a discussion with Bloomberg’s Sonali Basak, Druckenmiller expressed regret over this decision.
Druckenmiller revealed that he had sold all his Nvidia shares when the stock was valued between $800 and $950, only to see its value rise to approximately $1,300 per share. As of today, Nvidia’s stock stands at about $139.59, following a 10-for-1 stock split in June 2024, which was aimed at making the shares more accessible to a wider range of investors. Duquesne had initially acquired a substantial position in Nvidia, a prominent player in the AI sector known for its highly sought-after graphics processing units. In 2022, Duquesne held approximately $400 million in Nvidia stock, being their top investment. Druckenmiller began reducing his stake in 2023, and by August 2024, he had completely exited the position.
During the Bloomberg interview, Druckenmiller confirmed, “I own none today. It was a big mistake.” His initial expectation was to hold Nvidia shares for several years, but the stock’s tripled value prompted him to reevaluate the valuation as “rich.” In 2024, Nvidia’s stock surged due to high demand for its AI chips. Oracle co-founder and chief technology officer, Larry Ellison, recently shared how he and Elon Musk dined with Nvidia CEO Jensen Huang to request more GPUs, underscoring the high demand.
Despite his previous decision, Druckenmiller remains interested in the AI sector and is open to purchasing Nvidia shares in the future. He stated, “Were the price to come down, we’d get involved again. But right now, I’m licking my wounds from a bad sale there.”
