Only some actions feel like bubbles



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One big difference is that the 1990s means a much bigger rebound than what we saw in the 2010s. The kind of stock market bubbles that we saw in the top 2000 are only seen in isolated cases right now.

Tesla is a candidate there. It doesn’t help that it’s the strongest brand in electric cars or that they have the highest proportion of self-made equipment, so the software is easier to get in a really good way.

Participation has increased 768 percent in just one year. At the same time, the company hasn’t developed as much and the future hasn’t gotten much brighter. It is completely impossible.

For Tesla to trade at 21 times sales is very expensive. The company’s auto operations are not even profitable on the ordinary ground but thanks to the sale of emission rights. This is thanks to the fact that they only sell electric cars, unlike the competition.

That the ratio p / e according to Börsdata is greater than 1000 does not say much. That is an irrelevant key figure at this point. Tesla is also the best electric car company. Stock is best for trend followers and speculators.

We still have to keep in mind that valuation risk is extremely high when market capitalization is suddenly at the same levels as Warren Buffett’s Berkshire Hathaway. Tesla’s market capitalization is just under $ 600 billion, and if we assume a high p / e ratio of 30, net profits of more than $ 20 billion a year are required. More clearly growing profits for many years after that.

Jody Chudley claimed in a text message to The Oxford Club that Tesla is the most expensive stock he has ever seen. That is a dramatic statement.

However, I am not saying that Tesla is a bubble.
I say that the stock is a potential bubble.
It will be very difficult to grow in valuation. At least as fast as the stock market is likely to require.

Manage the stock accordingly. Passive investors avoid it. Active people can try to speculate on a continuous upward trend.

In general, there are other companies that have less risky valuations and therefore I remain a stock market optimist. Doesn’t smell like bubbles IT at 2000.

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