Paytm CEO Vijay Shekhar Sharma has shared a nugget of investment wisdom from American billionaire investor Stanley Druckenmiller, with his followers on social media platform X (formerly Twitter).
A hedge fund manager for over 30 years, and former chairman and president of Duquesne Capital, Druckenmiller is no stranger to the markets ups and downs. And he has a surprising investing mantra: “buy first, analyse later”.
And, while he is not the lone proponent — billionaire George Soros also preaches “invest and then investigate” as his go-to — the advice is catching attention now amid Nvidia’s meteoric rise.
In a post on X, Sharma shared a clip of Druckenmiller’s interview with Norges Bank in November 2024, where he explains his “buy now, analyse later” philosophy and how it led to his early bid in Nvidia.
Watch: Stanley Druckenmiller on ‘buy now, analyse later’
Why Stanley Druckenmiller follows ‘buy now, analyse later’ for stocks
Explaining his rationale to Norges Bank, Druckenmiller said that he didn’t know much about Nvidia, but ended up makes early gains because of this method at a time when the stock was not yet in mainstream attention.
“I didn’t know that much about Nvidia. I just knew AI. So we bought Nvidia, and then we’re in the process of doing a lot more work and then ChatGPT happened,” he spoke of the stock boom.
“But I’ve always had the view that markets are smart. They’re fast, and they’re getting much more so with all the communication and the technology we have today. And if I hear a concept and I like it, if I wait and spend two or three months, analysing it, I may miss a big part of the move and then psychologically be paralysed,” he explained.
He added that waiting to analyse a stock and seeing its movement could “screw up your head”, adding, “So we will buy something — a meaningful position, but not earth shaking. And if I think we made a mistake, I’ll sell it. And if I don’t think we made a mistake, we’ll add to it if we have to.”
This is not the first time he shared his mantra of buying first and “thorough” analysis later, in an interview with Norges Bank in May 2023, he explained that waiting to analyse could be missing “30-40 per cent of the move, and then I’m paralysed because it just went up and I don’t have the guts to buy it even if I think it’s going higher”.
Notably, Druckenmiller bought Nvidia shares in 2022 and sold them in 2024 — a decision he later, in many interviews, said he regrets.
‘Selling Nvidia a big mistake’
In October 2024, Stanley Druckenmiller told Bloomberg TV that his decision to sell out of Nvidia was a mistake.
“I’ve made so many mistakes in my investment career — one of them was I sold all my Nvidia probably somewhere between $800 and $950,” Druckenmiller said — this was at the time, Nvidia jumped 400 points on the AI boom. Notably, as per a CNBC report, at the time of his sale in 2024, he owned 8.75 million Nvidia shares worth around $400 million.
“It tripled in a year, and I thought the valuation was rich. Nvidia is a wonderful company and were the price to come down, we’d get involved again. But right now, I’m licking my wounds from a bad sale,” Druckenmiller told Bloomberg.
Nvidia shares added more than 3 per cent on September 18 close, at $176.24, following news that it would invest $5 billion in rival Intel, in what CEO Jensen Huang called “a fusion of two world-class platforms”, AP reported.
Huang said the move combines Intel’s strength in making conventional computer chips, known as CPUs, that power most laptops, with Nvidia’s focus on the specialised graphics chips that are critical for artificial intelligence (AI).
