Why Peter Thiel Dumped Nvidia and Tesla for *Those* Stocks? Seriously?
Okay, let's get this straight. Peter Thiel, Mr. PayPal Mafia himself, dumps Nvidia (NVDA) and Tesla (TSLA) for... Apple (AAPL) and Microsoft (MSFT)? Are you KIDDING me? It's like trading a Ferrari for a minivan.
The article says Thiel's fund made these "surprising moves" in Q3. Surprising is an understatement. It's baffling. It's like watching Gordon Ramsay order a Happy Meal.
Thiel sold nearly 208,000 shares of Tesla, raking in about $72 million. And then he cashed out his entire Nvidia position – 538,000 shares worth a cool $94 million. That's a lot of cheddar.
But here's where it gets insane. He then plowed (some of) that cash into Apple and Microsoft. 49,000 shares of Microsoft and 79,000 shares of Apple. The article says that's about $25 billion for the Microsoft purchase and $18 billion for the Apple purchase. Something ain't adding up here. $72 million + $94 million is nowhere NEAR $25 billion + $18 billion. So, where's the rest of the money going? Is he buying a private island? Funding a secret moon base?
The article suggests he's "de-risking his portfolio." De-risking? That's corporate speak for "I'm scared." Is Peter Thiel, the guy who made a fortune betting on crazy ideas, suddenly afraid of a little volatility? Give me a break.
The Apple Question: A Slow-Motion Train Wreck?
The article even questions the Nvidia-to-Apple move, and rightfully so. Apple's growth is slower than molasses in January. Revenue's been crawling along at under 10% for years. While Nvidia's been printing money hand over fist, thanks to the AI boom.
And here's the kicker: Apple and Nvidia trade for roughly the same valuation based on forward earnings. So, Thiel dumps a high-growth, future-proof company for a company that sells slightly shinier phones every year? What?
The article throws in this gem: "Peter Thiel also has a longer and far more legendary track record than I do." Translation: "I have no idea what he's doing, but he's rich, so he must be right." Well, I ain't buying it. Even legends make mistakes.
Maybe he's worried about an AI bubble. The article mentions "overall fears of an AI bubble" as a reason for Microsoft's recent stock dip. Okay, fair enough. But selling Nvidia for Apple? That's like treating a headache with a lobotomy.
Microsoft: The "Safe" Bet?
Microsoft, okay, I can almost see the logic there. It's the Windows behemoth. The Office overlord. The Azure juggernaut. James Brumley, some "top investor," even calls it one of his "top stocks to double up on." He says Microsoft has "sheer dominance" because Windows runs on two-thirds of the world's computers. Yeah, well, two-thirds of the world also uses toilets. Does that make toilet manufacturers a good investment?
Brumley also claims Microsoft has an "unstoppability that comes with its sheer size and its must-have offerings." Unstoppable? Ask Nokia how "unstoppable" feels. Ask Blockbuster. Ask... actually, you get the point. Nothing is unstoppable. According to one report, he views Microsoft stock as ‘A Tool to Leverage,’ Says Top Investor About Microsoft Stock.
offcourse, Microsoft is still a decent company. But is it a better investment than Nvidia right now? I seriously doubt it.
So, What's the Real Story?
Here's my take: Thiel's either lost his nerve, or he knows something we don't. Maybe he's getting insider info about Apple's next revolutionary product (a self-folding laundry basket, perhaps?). Or maybe he's just decided to play it safe and collect dividends while the rest of us chase the next big thing. Whatever the reason, this move smells fishy. And I'm not buying it.