Wealth-building case study in US stocks 2
Wealth-building in US stocks 👇
The report introduces the financial planning of early investors in Nvidia. One of them, Jim Woods, a dentist living in Kentucky, stated that the computer chip business will be a thriving industry. Another investor, Huang Renxun, who immigrated from Taiwan to the USA and briefly lived in Kentucky, also felt a connection.
In 2000, Woods decided to invest in Nvidia, spending $65,000 to buy 250 shares. Through dividend reinvestment and various stock splits, it has now become approximately 4,000 shares, valued at $16.04 million based on last Friday's (23rd) closing price.
Woods emphasized, "This is a very difficult stock to hold. If you are not willing to experience all its ups and downs, you will never get to this point." This is because when interest rates rose in 2022, it suppressed technology stocks, causing Nvidia's stock price to fall by 50%. The stock also fell by 76% in 2008 and 83% in 2002.
Over the years, Woods has never sold any Nvidia shares. Now he is considering reducing his holdings in the next few months, possibly investing some of the funds into two-month treasury bonds, but does not intend to completely divest from Nvidia, partly due to impending capital gains tax.
The report introduces the financial planning of early investors in Nvidia. One of them, Jim Woods, a dentist living in Kentucky, stated that the computer chip business will be a thriving industry. Another investor, Huang Renxun, who immigrated from Taiwan to the USA and briefly lived in Kentucky, also felt a connection.
In 2000, Woods decided to invest in Nvidia, spending $65,000 to buy 250 shares. Through dividend reinvestment and various stock splits, it has now become approximately 4,000 shares, valued at $16.04 million based on last Friday's (23rd) closing price.
Woods emphasized, "This is a very difficult stock to hold. If you are not willing to experience all its ups and downs, you will never get to this point." This is because when interest rates rose in 2022, it suppressed technology stocks, causing Nvidia's stock price to fall by 50%. The stock also fell by 76% in 2008 and 83% in 2002.
Over the years, Woods has never sold any Nvidia shares. Now he is considering reducing his holdings in the next few months, possibly investing some of the funds into two-month treasury bonds, but does not intend to completely divest from Nvidia, partly due to impending capital gains tax.
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