What should you know?
You have probably heard about the meteoric rise in NVIDIA’s share price. NVIDIA recently became the biggest listed company on the planet, surpassing titans like Apple and Microsoft to claim the top spot.
Its growth has been staggering and has, naturally, received a lot of media coverage. It is now the leader of the “magnificent Seven” companies (Nvidia, Apple, Microsoft, Amazon, Alphabet, Meta and Tesla) that have significantly driven markets upwards in recent years.
Why should you care?
Inevitably, you will hear stories of people who became rich by buying NVIDIA before or during its meteoric rise. With hindsight, you may question why you didn’t invest everything you had into the stock.
The answer is simple, it would have been a foolish decision. Regardless of whether it ends up being a successful outcome, investing large sums of money in only one company is ill-advised.
Predicting which companies will become these market leaders is incredibly difficult. For every NVIDIA success story there are countless others that crash and burn or plod along in mediocrity.
If you invest in a globally diversified equity portfolio, that tracks the global stock market, you are a part-owner of all the companies in the market. This way you participate in the rise of successful companies like NVIDIA, without the stress and potential consequences of getting it wrong.
