Nvidia (NASDAQ: NVDA) stock has provided me with incredible returns over the past few years. However, I made some big mistakes with growth stocks that cost me a lot of money.
Looking ahead, I’m determined not to make the same mistake with other stocks I’m looking forward to. If you play your cards right, I think this stock can pay off big in the long run.
I should have pulled the trigger sooner.
I can identify at least three mistakes I’ve made with Nvidia stock over the years. The first is that I didn’t buy the investment opportunity when I first saw it. I started talking about this stock with a friend in September 2016 while going through old WhatsApp messages.
“I’m putting Nvidia on my watchlist. I might buy on a pullback,” I wrote at the time.
Unfortunately, I didn’t buy it until about 5 years later. And it cost me luck. The stock price has increased approximately 15 times over the past five years.
If you had invested just $1,000 in 2016, it would be worth nearly $80,000 today.
Couldn’t buy enough shares
In August 2021 (well before the artificial intelligence (AI) boom), I got so excited about Nvidia that I finally bought the stock. But in hindsight, I didn’t buy enough.
Don’t get me wrong. My position was not small. I still make significant financial gains. But given my bullish view, it could have been more. Taking a larger position would have resulted in a larger profit.
Profit taken too early
Finally, the third mistake I made was taking profits off the table too soon. Last year, when the stock price jumped from about $15 to $50, I sold about 20% of my holdings.
That was a stupid move. Given the company’s revenue and profit growth rate, I should have held on to these stocks.
lessons learned
Now, everyone makes mistakes when it comes to investing. So I’m not going to be too hard on myself about these moves. But I’m determined not to do that with Uber ( NYSE:UBER ), another growth stock I’m excited about.
This is one of my stock ideas for the next 10 years. I’m very excited about the company’s potential in the self-driving taxi space, as I think Uber will likely become the platform for many self-driving taxi companies.
It’s worth noting that Uber is already operating robotaxis in some US cities in partnership with Google’s Waymo. And a few weeks ago, it announced that it would be launching in more cities.
Like Nvidia, this stock will be volatile. News about regulatory intervention and competition in the robotaxis space could push the company’s stock price lower.
However, I think this company has a lot of growth ahead of it. Considering its current market cap is only $156 billion (compared to Tesla’s $809 billion), I’m very excited about its potential.
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The good news is that it arrived fairly quickly. I started buying the stock last year at a price of about $40, below the IPO price of $45.
We have also established a certain position. Uber is currently just outside my top 10 holdings.
Now I need to hold on to my stock through both the ups and downs. Now comes the difficult part!
A post about making a mistake with Nvidia sharing. I don’t make them with this growth stock appeared first on The Motley Fool UK.
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Edward Sheldon has held positions at Nvidia and Uber Technologies. The Motley Fool recommends Nvidia, Tesla, and Uber Technologies. The views expressed on the companies mentioned in this article are those of the writer and may differ from official recommendations we make on subscription services such as Share Advisor, Hidden Winners, or Pro. At The Motley Fool, we believe that considering diverse insights makes us better investors.
The Motley Fool UK 2024
