Kweichow Moutai is a liquor consumer stock, while Nvidia is a chip technology stock; originally, they have no comparability. However, the institutional investors in both stocks are top-tier institutions!

Institutional investors in A-shares are public mutual funds, and their current scale has exceeded 30 trillion, which is impressive, right? They have been buying Kweichow Moutai, which has been declining over the past three years. Public mutual funds have mostly been losing money while holding Kweichow Moutai in recent years.

On the other hand, institutional investors in Nvidia have seen at least a 10-fold return in these three years. As institutional investors, isn't this gap a bit too large?

Kweichow Moutai is the top-heavy stock among public mutual funds, and by the end of 2023, there were as many as 1,509 public mutual funds holding Kweichow Moutai. The stock price soared from 218.88 yuan at the end of 2015 to 2,627.88 yuan after being collectively warmed up by public mutual funds.

After reaching a high point on February 18, 2021, public mutual funds did not take profits but continued to hold. Kweichow Moutai has always been the top-heavy stock among public mutual funds. Although it was once surpassed by CATL, by the first quarter of this year, Kweichow Moutai was still the top-heavy stock among public mutual funds.

That is to say, public mutual funds holding Kweichow Moutai have been losing money over these three years, even if the annual dividends are included, including top-tier funds like Zhang Kun. In 2015, when Kweichow Moutai was hyped, the annual output of Moutai liquor was 19,600 tons. In 2023, the base liquor output of Kweichow Moutai was 57,200 tons, and the output of Moutai series liquors was 42,900 tons.

This means that the annual base liquor output of Moutai Company has now reached 100,000 tons, which can be used to mix 210 million bottles of Moutai liquor per year, and it is still growing at a rate of 15% per year. In addition, with the 278,000 tons of Moutai liquor in stock at the Moutai factory, it can be used to mix 560 million bottles, and the existing stock of liquor sold outside is about 340 million bottles.

Kweichow Moutai liquor is no longer scarce. If it were not for the help of dealers to suppress inventory, it would be difficult to say whether it could maintain 1,499 yuan now.

Nvidia's latest market value is 3.1 trillion US dollars. When Kweichow Moutai set a historical high, Nvidia's stock price was only 150 US dollars after a 1-for-4 split. In 1993, when Nvidia was founded, Huang Renxun once said to employees: "We are only 30 days away from bankruptcy." More than 30 years have passed, and Nvidia has grown into the world's third-largest company, second only to Microsoft and Apple.

In addition to the efforts of Huang Renxun and his team, institutional investors have also helped the company's development. Among the top ten shareholders of Nvidia, they are all world-class investment companies, including Vanguard Group with a 7.74% stake; Fidelity Management & Research Company with a 4.93% stake; BlackRock Fund with a 4.69% stake; State Street Global Advisors with a 3.7% stake; Huang Renxun with a 3.51% stake; American Express with a 2.08% stake; Crystal Cave Capital with a 1.92% stake; Norges Bank with a 1.08% stake; J.P. Morgan with a 1.03% stake; Northern Trust with a 0.9% stake. Apart from Huang Renxun, behind these investment companies are millions of investors.Institutional investors in NVIDIA have held onto NVIDIA stocks for the long term, not only accompanying the company's growth but also creating substantial wealth for a broad base of investors. Among the seven major technology stocks in the U.S. stock market, these institutional investors are essentially the same, indicating that their investment vision is indeed impressive and has brought astonishing investment returns to many investors.

In recent years, public mutual funds in the A-share market have suffered significant losses in sectors such as liquor, pharmaceuticals, lithium batteries, and photovoltaics. In 2022 alone, the losses of public mutual funds reached a staggering 1.45 trillion yuan.

Like other technology stocks, NVIDIA is a true "publicly held company," not dominated by a single share. Even the company's founders do not hold a large proportion of shares in the company. Such a shareholding structure allows founders to grow the company alongside institutional investors!

By comparing Kweichow Moutai and NVIDIA, we can see the different stock selection approaches of domestic and foreign institutional investors. Where exactly is the gap between them, and why is there such a significant difference?

The above is merely my personal opinion and should not be taken as investment advice. Any actions taken based on this information are at your own risk, with profits and losses being your own responsibility.