European Capital Partners - Beware the excitement Discover this fund | European Capital Partners
Asset management and fund structuring boutique

Beware the excitement

Jun 16, 2023

According to Warren Buffett: “Investors should remember that excitement and expenses are their enemies.” For AI, you have the kind of excitement currently that may well end at a heavy cost for some investors. Example NVIDIA: the company is a clear winner of AI but its stock price is now supercharged. The stock is up 192% this year alone and 544% over 5 years. It trades at 140 times trailing earnings, 41 times revenues, 43 times book value and carries a dividend yield of 0.04%. For us it is hard to justify this type of “excitement” in our client portfolios.

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