The car
Published on September 10th, 2020 |
By Frugal Mughal
September 10th, 2020 By Fruit Mogul
Note: Investment advice is nothing below.
At the end of the September day, I checked my phone and found that my stock portfolio portfolio had got the biggest single day of my entire life. Larger than any one-day drop I had experienced even at the onset of the epidemic, the value on paper was below five figures.
Prior to this issue, even though I have had investments in the stock market for over 20 years, I have generally focused my investments on unreliably stable companies that were regular, large dividends, and less focused on growth. I made some incredibly poor initial choices during the dotcom bubble and learned from them – but because it was so early in my life, I had to work hard to save money from being in the minimum wage job in high school, so I didn’t do it. ‘T has a lot of money to invest that can be lost.
Monday, September 8, however, was a five-figure paper loss, and I found myself questioning my investment.
One side over investment advice
Before moving on, the commenters on my articles have been following me interestingly lately. After my last article, I mentioned to someone that I should really add a clear disclaimer – I think that one at the top and bottom of the article wasn’t enough, so why not add another mention?
Let’s be clear. If you are an investor, or are thinking of investing, and you can come and read the same article on any website and then invest all your money in one investment, You are doing wrong I’m actually teaching this to my 10 year old son right now, who has decided he wants to start investing. His method Google’s stuff like “the best stock to buy today” before enthusiastically telling me that someone has a share of 77 1.77 that could rise 311%, and he could buy that company?
And, seriously, if you Google it, you’ll find a specific company. The question, as I suggested earlier, is what might be the goal of writing the article? If you dig into the company that is being advertised the way it is, we find that 77 1.77 shares have lost about 25% since then, so the investment campaign is not working. So, why would they be doing that?
If that’s not clear, I’m not referring to the company because I don’t want to give them any credibility. But any discerning reader should ask the same question of every site they read that contains information about stocks. In theory, I could just be a puppet (I’m clear No Sock Puppet trying to raise the price to sell and sell my shares).
In general, if you are a smart investor, and you want to invest in any particular company, you should actively look for both positives. And negative Perspectives and weigh them.
In fact, when I suggested writing Clintenica, I was already doing all this research, diving into the FUD article and trying to determine the forest by the trees. I look forward to finding things about what Tesla likes and things I don’t like. In fact, I wrote an article about it, and how I was surprised that I got no support for negative views. Your mileage may vary, and you shouldn’t read a single article, expecting it to give you full investment advice. If you’re doing that, you’re doing it wrong.
What has changed about Tesla?
That way, let’s move on to Tesla. In late March, I wrote an article about how I appreciated Tesla (or any company) that was influenced by COVID-19, and I specifically outlined eight points to help me decide whether or not to invest in businesses. That’s what I use.
Before I check out my view of Tesla today, I wanted to point out that this is what I do for literally every company. Many analysts who are concerned about Tesla would like to compare the P / E of the industry, or the levels of support and wedge in the stock chart, or … a lot of things. From my initial investments, I can learn that if a company has a premium, people who think the industry is running, as long as it continues, will continue to premium. As such, no stock chart level will support the company if it is having major problems. Either way, disagree with this and feel free to create your own system, but it has been working really well for me for the last 20 years, since the dotcom bubble took me one step further and figured out what I was doing.
Let’s examine these issues:
The leadership of the company
Elon Musk may polarize for the general public, but his drive and determination have clearly established an atmosphere of innovation and progress in the engineering teams at Tesla, and the rest of the management team seems to have done very little in recent times. Years. The fact I can see that continuing the culture means that I am more comfortable with the leadership of the company.
Executive Pay
Elon Musk’s stock package is unique, but it runs almost entirely on the company’s performance. I have no problem with this type of return, and it is better than multi-million-dollar lar packages that are not tied to the company’s operations, which many other companies assign to executives.
Related, this is where I think there is a connection to reporting and the real world. I see a rating of articles about how much Elon Musk gets from a good day at a net price, but it’s all in stock that musk isn’t selling, it’s not real value until that stock is sold. This is important, since Musk’s networth is on almost all paper, and he has no assets in the bank. In addition, Kasturi could not sell all of its stock without extensive crawling of value, meaning its assets were liquid, or could not be easily converted into cash.
When it comes to Tesla’s value, it also becomes the CEO of the largest shareholder and the most skinny company in the game, which is basically compensated only when it increases the value of that share for both itself and all shareholders.
If it is not clear, i Love Formation of musk executive salary. The rest of the company is a bit more standard, but it’s also clearly connected to performance, as Kasturi won’t keep around people who weren’t performing.
No stock buybacks
Even among established companies, I have stock buybacks probably my biggest red flag. Theoretically, with stock buybacks, I have a slightly larger percentage of the company as a shareholder, but I think raising share prices is often done which might not be what it should be, while often an excuse to give large exorbitant cash bonuses to executives. Creating time. I don’t like any of this.
With a company like Tesla, if it has a plan I see it increasing the market share instead, if I want to return the extra profit as a dividend to the established company. In fact, Tesla has sold only 5 5 billion worth of additional shares since the beginning of this month. I expect that G5 billion in cash is enough to fund Giga Texas. I would love this move, and would love to hear that we will do it again.
Long term planning
Battery Investor’s Day is less than two weeks long, but even without it, we see and hear constant pressure about the future. I know about the expansion in China, a new plant in Texas, a new plant in Germany, the start of production of Cybertruck and Semi and Roadster and we have started to create pressure for energy production. While it’s clear that Tesla cares about its quarterly earnings, it also takes a clear back seat to its future plans.
Is Business Future Proof?
One way or another, we will transition to fossil fuels. Tesla, it is on the verge of bleeding companies transitioning to transport, and could make a tremendous entry with grid management.
Do I understand what they do?
Tesla’s goal is to accelerate the transition to sustainable energy. It achieves this by creating the most desirable vehicles of any type, while developing and implementing power generation and storage methods. Tesla has done this by promoting a culture of innovation outside the norms of the industries in which they operate.
Am I close to them?
I’ll admit it, I’m very close to Tesla now – but I started investing in the company before that. I’m also pretty good at comporting about what I choose, while being able to accept flaws about them. I think Tesla has an excellent product … but I can say for sure that I like the product so I don’t invest in the company.
Investing for long distances?
This was my final point, but I want to highlight it, because that’s why I was a little stressed. Here is exactly what I wrote in my March 24 article:
I originally titled this “Don’t try to give the market time,” but I think the real lesson is that you should never invest in a company that you don’t intend to keep for at least three years.
My beliefs about Tesla have not changed. I don’t think I should have invested in Tesla if the regular double-digit growth was sustainable right now, but I also didn’t think there would be any huge pullbacks.
And then yesterday, the announcement of a stock sale of 5 billion dollars (which I like) and the news that Tesla had not added the S&P 500 (which I honestly don’t care about) crushed the stock. And it strained me out.
When I started I read a book on investing – I honestly don’t remember which book, I probably read 100 or more – and it says that if you invest in a stock and you believe in it, when It lowers the price. , You should consider it “on sale” and as an opportunity to invest.
Conclusion
On September 8, Tesla went “on sale,” and it was a sale I didn’t expect, so I didn’t have the ability to exchange money to take advantage of that sale.
You may disagree. Perhaps Tesla is the home of the cards, which many affidavits – as if suddenly re-enacted – seem to be willing to adapt to themselves. My belief in the company’s outlook has only grown brighter (hurray to sell the stock!), So seeing as sales decline I have missed out – recovering almost half of its losses with the stock writing – is disappointing.
Tesla’s share price is pushing me… because I think I missed the sale.
Disclaimer
I am Tesla [NASDAQ:TSLA] Shareholder who has purchased shares within the previous 12 months. The research I do for articles including this one may force me to increase or decrease the stock position. However, within 48 hours after an article is published I will not do this in which I discuss matters that I think may physically affect the share price. I do not believe that my voice itself can or will influence the share price, and I strongly warn anyone against using my work as your sole data point to choose to invest or dive into any company. . My article is my opinion, which was formulated using research based on publicly available data. However, my research or conclusion may be wrong.
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About the author
Fruitful Mogul A businessman first, Froogle Mogul looks at EV from a business perspective. After working in multiple industries and significant money management roles, he believes the way to convince people that the EV revolution is here is by looking at vehicles like business.
