As of now, Nvidia's total market value is 3.06 trillion. Although it has opened a gap with the world's number one throne, it has undoubtedly created a legend of the times.

How successful is Nvidia?

What is shocking is Nvidia's growth rate. It took Nvidia only 9 months to grow from a market value of 1 trillion US dollars to 2 trillion US dollars, and it took only 4 months to grow from 2 trillion US dollars to 3 trillion US dollars. So far, there is only one company in the world that has achieved such a rocket-like growth rate! Nvidia has created a myth of the market value of listed companies! Some analysts even optimistically predict that Nvidia is expected to become the first company in human history to have a market value of over 10 trillion US dollars.

In fact, the S&P 500 index has risen by nearly 15% this year, of which Apple, Nvidia, Microsoft, Google and Amazon have contributed 60% of the increase, and Nvidia alone has contributed 34% of the S&P 500's increase. It is safe to say that there has never been a stock as important to the U.S. stock market as Nvidia, and there has never been a stock that has risen so fast. In contrast, Tesla, the darling of a few years ago, took about 11 months to increase its market value from $500 billion to $1 trillion, and then quickly fell back.

If you go back to five years ago and invest 500,000 in Nvidia stock, how much can you make? 500,000 five years ago may be the down payment for an ordinary house in a second-tier city, but if you use it to invest in Nvidia stock, it will be enough to pay off all your mortgage loans and upgrade it to a big villa.

Source: uSMART SG

Five years ago today, Nvidia's stock price was only $3.297, and now it is quoted at $123.99, which is 37 times that of five years ago. It is conceivable that if you invested 500,000 in Nvidia five years ago, you would become a multi-millionaire today. This is Nvidia's amazing growth rate.

The investment logic of "laying a long line to catch a big fish"

Buffett has said many times that investment is actually very simple:

"Investment is actually very simple - buy a good stock, don't sell it easily, you just need to wait for the stock price to rise! Don't panic too much when the market falls, and don't be too greedy when the stock market rises sharply, and you will earn a very high return."

"Investing in stocks is very simple. All you need to do is buy the stock of a large company at a price lower than its intrinsic value, and make sure that the company has the most honest and capable management. Then, you can hold these stocks forever."

In fact, the investment logic of "laying a long line to catch a big fish" seems very simple, but in fact few people can achieve the unity of "trust" and "patience". The original intention of most investors to speculate in stocks is to gain unexpected value in the short term, so they often cannot tolerate the sharp rise and fall of stocks. If we do not regard stocks as lottery tickets or just a trading voucher, but are willing to invest in a long-term partner of an excellent company and pursue the maximization of long-term returns, then we will make value investments like Buffett. When the company encounters a temporary setback and is undervalued, we will bravely buy against the trend and hold for a long time. We may be stuck in the short term, but we will make a lot of money in the long run.

As Buffett said: "A successful investment career does not require genius IQ, extraordinary economic vision, or insider information. What is needed is the correct thinking framework when making investment decisions, and the determination to avoid emotional outbursts and maintain rational thinking. Graham clearly and clearly tells us the correct investment decision-making thinking framework in his book "The Intelligent Investor", but another element of investment success - emotional determination needs to be cultivated by yourself."

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