NVIDIA's portfolio is impressive. But I'm not chasing every stock just because NVIDIA owns it. That distinction matters to me. A company can have a brilliant strategic investor and still be a terrible entry point. Price matters. Valuation matters. Balance sheets matter. Execution matters. Timing matters. Take the AI infrastructure names. The underlying theme can be completely correct while the stock is still overpriced. I remind myself of that constantly. A great company isn't automatically a great investment at every price. So when I see NVIDIA putting billions into a company, my process has started looking like this. First, understand why NVIDIA invested. Then look at the company's actual fundamentals. After that, check the valuation. Identify the biggest risk to the thesis. And only then decide whether the current price actually gives me enough margin of safety. Only after all of that do I even start thinking about buying. Honestly, I'm more interested in finding the second-order opportunity than chasing the headline. If NVIDIA is spending billions to solve an AI bottleneck, maybe the real opportunity is another company solving that same bottleneck at a better valuation. That's the rabbit hole I keep going down. Do you buy the headline stock, or search for the second-order beneficiary?
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Ethan Reyes@ethanreyes · 10d
The CEO of NVIDIA, Jensen Huang, said himself that energy is the bottleneck for AI. I'm going to start building a position in the energy sector before this becomes mainstream.
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