Wall Street Veteran Investor: Bearish on Tesla and Nvidia

Chris Bloomstran, Chief Investment Officer of Semper Augustus Investments, a seasoned investor on Wall Street, recently discussed his favorite stocks such as Dollar General, as well as his less favorable views on NVIDIA and Tesla.

Regarding the current market, he stated, "This optimism is returning to the technology sector, especially the belief that, you know, history is repeating itself, and we are repeating it again."

He also believes that NVIDIA investors "will lose money in the next 15 years." Bloomstran's reasoning is that even in a perfect scenario, NVIDIA's profit margin will not grow as strongly as Wall Street expects, even over these many years. He holds a small short position in NVIDIA and Tesla.

Regarding Tesla, he said, "Its market value is approaching a trillion dollars again. Its revenue has now reached $100 billion." He criticized Tesla's autonomous driving goals, the extensive promotion by ARK Invest, and the elusive profit margin.

However, he does like Dollar General because of "their footprint in rural areas" and their customers - the economic situation of middle-class families. There is a huge moat around Dollar General.

"In the past month and a half, we have placed Dollar General in a significant position because it is now one of the cheapest companies in the portfolio, whereas two years ago it was one of the most highly valued companies in the portfolio. Over time, by reducing high-priced stocks and buying low-priced stocks at the margin, it will bring tremendous value," he said.

One of his fundamental recommendations is, "Anything can be reduced or sold at a certain price, including Berkshire Hathaway. At certain prices, especially from the perspective of opportunity cost, I am willing to reduce my holdings in Berkshire's stock."

But he stated that investors should be satisfied with the next 10 years because "in the current valuation environment, it is an easy bet."