Don't be afraid of concentration risk. It took longer to go from 0 to a 10-bagger than it did to go from a 100-bagger to a 250-bagger. Beginners sell their winners, call it “rebalancing,” and never end up with even a 10-bagger. Then they come to me and tell me I was just lucky 😂.
AMD hit a new all-time high this week because the massive growth in demand for server CPUs for generative AI has led to significantly raised revenue forecasts and, as a result, sharply increased price targets from analysts.
Back then, I was a gamer and knew the products; I knew that AMD just needed a good processor architecture to hold its own as the underdog in the duopoly with Intel. That didn’t come with Bulldozer, but it did later with Zen. I wasn’t in the black right away; instead, I was in the red for about five years (2011–2016). I never sold my shares; instead, I bought more three times because I believed in the company’s potential. Now the products are better than Intel’s and are also used in game consoles, cars, aerospace, data centers, and for AI. AMD was my very first stock in February 2011.
I bought AMD shares in
2011: €6.63
2012: €1.70
2014: €1.93
2015: €1.97
Current price: approx. €463
Of my total 2,500 AMD shares, I’ve still held onto 1,000 for many years. This week, they had a total value of €500,000. I’m holding on to them.
Back then, I used to constantly watch videos by YouTubers who had industry leaks. That’s why I knew quite a bit about promising future AMD products. That gave me the confidence to hold on to them. Notable examples include “Moore’s Law is dead” and “Coreteks.”
