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Peter Thiel sells off all Nvidia stock, stirring bubble fears

(www.thestreet.com)
212 points hypeatei | 1 comments | 16 Nov 25 21:19 UTC | HN request time: 0s | source
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buybuybuy ◴[16 Nov 25 21:43 UTC] No.45948682[source]▶
Should we all buy stock in Nvidia now? It’s not like Peter Thiel is Warren Buffet or anything. And Warren Buffett is buying Alphabet.
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TheAlchemist ◴[16 Nov 25 22:10 UTC] No.45948887[source]▶
Warren Buffett is buying Alphabet out of neceessity - he already sold most of what he could sell and has way too much cash on hand - he just need to buy 'something' - Alphabet seems like the least overvalued big stock out there.
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scarmig ◴[16 Nov 25 22:12 UTC] No.45948921[source]▶
Is he required to buy stock? AFAIK he could just as well hold cash or bonds, and if he believes a bubble pop is imminent (within the next couple months), that would be a responsible move.
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Deegy ◴[16 Nov 25 22:28 UTC] No.45949040[source]▶
Not required of course. This move to finally move some of his cash horde into equities could be a result of the US governments recent announcement that they're ending their quantitative tightening policy. This likely signals a move back to a period of quantitative easing which could cause assets to continue to inflate while the value of the dollar continues to erode.

Basically he could just be trying to protect the value of his dollars by putting them into a very stable company that also has exposure to the upside of AI.

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andy99 ◴[16 Nov 25 22:43 UTC] No.45949146[source]▶
Probably a stupid question, why not buy something like CHF then, if one is concerned about eroding dollar value? Is the thesis that blue chips (if google is one) would rise faster than USD is devalued?
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1. rubyn00bie ◴[16 Nov 25 23:07 UTC] No.45949286[source]▶
Stocks are going to be better at hedging against inflation than any one specific currency, because they’re able to raise prices. This is something Buffet has talked about which is mildly detailed here: https://www.investopedia.com/how-warren-buffetts-1-rule-can-...

How the dollar erodes, and its effect on other currencies will be unpredictable. Corporations raising prices to offset their rise in costs, is predictable. It’s just a matter of finding those corporations and industries which can do so without losing more sales.

I’d assume the urge to “cash up” here is driven by the idea of trying to sell the top, and buy the resulting bottom. I highly doubt Thiel thinks AI isn’t worth today’s market cap or several multiples of it, in the long term, and that any “bubble burst” will likely be a generational buying opportunity.