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by TrapLord_Rhodo 622 days ago
Rev for last 2 years:

$24.6M $78.7M $270M($136.4M)

Sounds like a rocketship. You also get a better sharp if you take some money off the table in the form of leverage and put it in other firms within the industry. E.G. Leveraging your NVDA shares and buying Cerebras.

1 comments

> take some money off the table in the form of leverage and put it in other firms within the industry. E.G. Leveraging your NVDA shares and buying Cerebras

Please don't do this. Sell your Nvidia shares and rebalance to Cerebras, whatever. But financially leveraging a high-multiple play to buy a correlated asset (which is also high multiple) is begging for a margin call. You may wind up having been right. But leverage forces you to be right and on time.

You are so on point! A huge number of amateur investors get obliterated on this. Your call may be right, but that's no help if you don't survive to see it realized.

You may have a hugely profitable idea that could realize crazy gains over a 5 year horizon, but if you get margin called and liquidated in year 3, you'll end up with nothing.

The magic of investment is compound returns, not crazy leverage. Take some of the crazy Nvidia profits and reinvest it elsewhere where you expect geometric growth. Keep things decently diversified.