Renowned
value
investor
Guy
Spier
doesn’t
own
Nvidia
—
and
he
isn’t
planning
to.
“Price
matters,
and
it’s
not
always
the
horse
that
is
the
fastest
that
is
best
for
the
person
to
bet
on,”
he
told
CNBC
Pro
Talks
last
week.
Spier
says
Nvidia
is
too
expensive
right
now,
and
he
would
avoid
it.
“In
investing,
we
don’t
want
to
be
in
the
very,
very
best
because
there’s
no
room
for
growth
in
a
certain
way
all
the
low-hanging
fruit
has
been
picked.
In
the
case
of
Nvidia,
we
have
a
nosebleed
valuation.
And
for
me
that
says
stay
far
away,”
he
said.
Spier,
who
calls
himself
an
“ardent
disciple”
of
legendary
investor
Warren
Buffett,
manages
the
$350
million
Aquamarine
Fund.
Spier
closely
follows
Buffett’s
investing
principles,
and
the
Aquamarine
Fund
is
inspired
by
the
original
1950s
Buffett
Partnership
era
.
Shares
of
Nvidia
have
skyrocketed
190%
this
year
on
the
optimism
surrounding
artificial
intelligence.
“Nvidia
might
be
excellent,
but
at
this
price,
I
don’t
think
it’s
excellent.
And
buyer
beware,”
Spier
added.
The
only
chip
stock
Spier
owns
Spier
has
only
one
chip
stock
in
his
portfolio:
Micron
,
one
of
the
world’s
largest
producers
of
memory
chips.
He
says
it’s
a
consolidating
industry
with
“really
just
four
competitors.”
“[Capital
expenditure]
and
technological
development
have
slowed
sufficiently
that
I
think
that
the
companies
will
find
a
way
to
have
a
stable
if
not
growing
profit
pool
from
the
increasing
demand
from
chips,”
Spier
said.
He
added
that
it’s
very
likely
that
competition
in
memory
chips
will
be
reduced.
“In
memory
chips,
it’s
going
to
be
a
stable
profit
pool,
providing
something
very
important
for
all
computing,
which
is
memory.
And
that
profit
pool
will
be
shared
by
the
existing
players,
which
may
still
consolidate
even
farther,”
Spier
said.
Spier’s
fund,
which
was
started
in
1997,
has
logged
an
annualized
return
of
9%
since
then,
according
to
Aquamarine.
That’s
higher
than
the
S
&
P
500
′s
8.2%,
the
MSCI
World
‘s
6.9%,
and
the
FTSE
100
′s
3.6%.
