Note I did go on to explain my reasoning.
bertie wooster wrote: Valuethinker wrote: 4nursebee wrote:
I am a fan of the company and think they can change the face of transportation. Because of this I am an investor.
In another 9.5 years I hope to post my story for the haters back here: viewtopic.php?f=10&t=106653
Quite frankly, you are mad.
Wow - that is just an excellent response to have when you disagree with someone. You must be a real hoot to have discussions with.
A fair cop. My language was inappropriate (it might help if you put an English accent on it-- the way that term is used in England, in that expression, is slightly different than the US I suspect-- the connotation is in the UK is that the action is unwise and potentially dangerous, however there is that underlying English admiration of the eccentric amateur risk taker 'to climb that mountain alone was mad' but with admiration if it succeeded, and a knowing nod if it led to the subject's death. As in 'to stand alone against Hitler was the act of a mad man, leading a mad nation'- -ie a rash gamble, but Churchill pulled it off).I should have written 'it's axiomatic to being a boglehead that if we like a product that we can afford, we buy it. But we don't confuse that with owning the stock'.
(you like PG Wodehouse. So you'd probably enjoy the Evelyn Waugh 'Swords of Honour' Trilogy
(or the 1 volume condensation). About the reaction to Churchill at the time, as an opportunistic bounder, fringe politician and radio talk show hack who suddenly, unaccountably, was leading the nation to war with a vastly superior power. The description of the retreat in Crete, and the sense of the chaotic amateurishness of the British forces at the time, is classic. We were, in fact, mad. Just gloriously mad, mad in a just and great cause. Wodehouse of course got captured by the Nazis and foolishly agreed to speak on Nazi radio about his captivity, forever branding himself a collaborator and traitor)).
See also the film 'The Life and Death of Colonel Blimp'.http://en.wikipedia.org/wiki/The_Life_a ... onel_Blimp
and contrast that to the blatant (and brilliant) propaganda 'In which we Serve'. The filmic treatment of the British destroyers under air attack during the evacuation would be repeated in the real world on another quixotic, mad and very British quest-- Mrs. Thatcher's recapture of the Falklands in 1980-81. When the Argentine fighter bombers came howling down the water in Port St. Carlos Bay, and HMS Ardent, Antelope, Coventry each went down in turn with 1000 pound bombs in the hull.. you couldn't help but have flashbacks to Dunkirk and Crete.
The 'I liked the product so I bought the stock' is a debate we have here many times. Usually about Apple. People have made a lot of money doing that.
Those of us who are older have also probably lost a lot of money doing that. Peter Lynch makes it sound easy, it's anything but.
So my counsel was one of financial caution. I am all for people buying neat products (as long as they can afford it). But then doubling the bet by putting money on the stock, in contravention of the whole principle of diversification? THAT I counsel against.
Auto manufacturing is just not a 25% operating margin business with low working capital like, say, software. It's a 2.5% margin business (BMW makes about 8% from memory, the highest of any manufacturer). It's vertically incredibly complex supply chain, with huge working capital-- thus giving you constant cash flow issues, especially as you ramp production. A wobble in the production/ sales process can kill you because of that. This is very far different from say PCs in the early days (really until Dell turned the PC into a Toyota). And even there, industry cycles killed companies-- remember the Osborne 1?
Anyways, fair point about language. Thank you.