Per my May article , Nvidia Corporation ( NVDA ) is better prepared for the future than competitors. The fiscal Q2 '26 and Q3 '26 numbers have come out since then, and theyI'm an individual investor heavily influenced by Warren Buffett and Charlie Munger. Munger's 1994 USC Business School Speech is something I think about a lot: Over the long term, it's hard for a stock to earn a much better return than the business which underlies it earns. If the business earns 6% on capital over 40 years and you hold it ...

Core Insights - The long-term returns of a stock are closely tied to the underlying business's performance, with a business earning 6% on capital over 40 years yielding similar returns for investors, regardless of initial purchase price [1] - A business that earns 18% on capital over 20 to 30 years can still provide favorable returns even if purchased at a high price [1] - The impact of taxes on investment returns is significant, with a 35% tax on a 15% annual return reducing the effective return to 9.75% if taxes are paid annually, compared to a 13.3% return if taxes are paid only at the end of the investment period [1] Tax Implications - The difference in effective returns due to tax treatment can be over 3.5%, which has a substantial effect on long-term investment outcomes [1] - Holding investments in great companies for extended periods can provide a significant advantage due to the way income taxes are structured [1]

Core Insights - The long-term return of a stock is closely tied to the underlying business's performance, with a business earning 6% on capital over 40 years yielding similar returns for investors, regardless of initial purchase price [1] - A business that earns 18% on capital over 20 to 30 years can still provide good returns even if purchased at a high price [1] - The impact of taxes on investment returns is significant, with a 35% tax on a 15% annual return reducing the effective return to 9.75% if taxes are paid annually, compared to a 13.3% return if taxes are paid only at the end of the investment period [1] Tax Implications - The difference in tax treatment can lead to a substantial impact on long-term investment returns, highlighting the importance of tax strategies in investment planning [1] - Holding investments in great companies for extended periods can provide a significant advantage due to the way income taxes are structured [1]