Single Stock (TSLA)

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Unbrokenspark
Posts: 54
Joined: Thu Nov 21, 2019 5:29 pm

Single Stock (TSLA)

Post by Unbrokenspark »

Emergency Fund: 3 months of expenses.
Debt: None House is Paid off (65K)
Filing Status: married filing jointly
Tax Rate: 12% Fedral 9% state
State: Iowa
Age: 25 wife 27
AA: 100/0
income 50K
Right now we have roughly 87K invested between work traditional/Roth 401k and Roth's and HSA (FXIAX) (FSMAX)(VTIAX)(VTSAX)(TSLA)


I have 2 tesla shares bought at 1500 in HSA. I'm conflicted on buying more or not. Alot of hype about once in a lifetime stock and FOMO going on, it could go up it could go down.. Thoughts single stock. no more than my total net worth I know this.
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geerhardusvos
Posts: 1142
Joined: Wed Oct 23, 2019 10:20 pm
Location: heavenlies

Re: Single Stock (TSLA)

Post by geerhardusvos »

Unbrokenspark wrote: Sat Aug 22, 2020 5:28 pm Emergency Fund: 3 months of expenses.
Debt: None House is Paid off (65K)
Filing Status: married filing jointly
Tax Rate: 12% Fedral 9% state
State: Iowa
Age: 25 wife 27
AA: 100/0
income 50K
Right now we have roughly 87K invested between work traditional/Roth 401k and Roth's and HSA (FXIAX) (FSMAX)(VTIAX)(VTSAX)(TSLA)


I have 2 tesla shares bought at 1500 in HSA. I'm conflicted on buying more or not. Alot of hype about once in a lifetime stock and FOMO going on, it could go up it could go down.. Thoughts single stock. no more than my total net worth I know this.
Owning single shares and individual stocks is a losers game. It’s not recommended here at this forum. Sell them immediately and put it in a broad-based index fund. Check out the wiki to learn more about the Boglehead approach. Keep buying the whole market, keep your expenses low, keep your standard of living low, and you will be very pleased 20 years from now.

See links:

1. ‪https://www.bogleheads.org/wiki/Getting_started‬

2. ‪https://www.bogleheads.org/wiki/Three-fund_portfolio‬
VTSAX and chill
000
Posts: 2785
Joined: Thu Jul 23, 2020 12:04 am

Re: Single Stock (TSLA)

Post by 000 »

Would you rather own 1% of TSLA ($3.7517B at current market cap) or 915,000 acres of US cropland?
Rudedog
Posts: 265
Joined: Wed Aug 01, 2018 3:15 pm

Re: Single Stock (TSLA)

Post by Rudedog »

Been watching Tesla, I just find it hard to think that its big rally will keep going. The cars are expensive, they go a limited distance on a charge, there are not nationwide charging stations, there are several competitors starting to show up, lots of debt, factory in China that is skewing sales numbers upward. It'll be interesting to see how and when the gigantic new factory in Texas gets going. J L Collins speaks of owning single stocks as owning "dogs and cats".
TravelforFun
Posts: 2186
Joined: Tue Dec 04, 2012 11:05 pm

Re: Single Stock (TSLA)

Post by TravelforFun »

Rudedog wrote: Sat Aug 22, 2020 5:55 pm Been watching Tesla, I just find it hard to think that its big rally will keep going. The cars are expensive, they go a limited distance on a charge, there are not nationwide charging stations, there are several competitors starting to show up, lots of debt, factory in China that is skewing sales numbers upward. It'll be interesting to see how and when the gigantic new factory in Texas gets going. J L Collins speaks of owning single stocks as owning "dogs and cats".
Tesla is not just a car company, it's a technology company. How many cars out there besides Teslas that get over-the-air software updates giving their drivers more functionality over night? Plus the data Tesla collects on its cars and their drivers is pure money.

I'm holding my shares and am predicting post 5-1 split will attract many small investors especially the Robinhood gang.

TravelforFun
jschlocker
Posts: 3
Joined: Sat Feb 29, 2020 10:39 am

Re: Single Stock (TSLA)

Post by jschlocker »

I agree...
Cars are awesome despite some quality issues.
Battery and solar is great despite some “clunky” sales and installation issues.
I have car, solar and battery; best investment decision!
FoolMeOnce
Posts: 983
Joined: Mon Apr 24, 2017 11:16 am

Re: Single Stock (TSLA)

Post by FoolMeOnce »

Unbrokenspark wrote: Sat Aug 22, 2020 5:28 pm Alot of hype about once in a lifetime stock
Maybe for those that bought years ago when it was around $20 or $30. You're a little late. Let's say it somehow doubles again in a year. That's not once in a lifetime. Your not missing much anymore.
tiburblium
Posts: 111
Joined: Thu Apr 11, 2019 4:28 pm

Re: Single Stock (TSLA)

Post by tiburblium »

Zoom is at 1,730 p/e while TSLA is only 1,036 p/e. So maybe that means TSLA could go up another 50% this year, or next week, who knows.
Monsterflockster
Posts: 381
Joined: Thu Nov 21, 2019 12:03 am

Re: Single Stock (TSLA)

Post by Monsterflockster »

Well if I had bought Tesla stock instead of their car I’d be a millionaire. 🤪 Oh well.
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unclescrooge
Posts: 5340
Joined: Thu Jun 07, 2012 7:00 pm

Re: Single Stock (TSLA)

Post by unclescrooge »

Unbrokenspark wrote: Sat Aug 22, 2020 5:28 pm Emergency Fund: 3 months of expenses.
Debt: None House is Paid off (65K)
Filing Status: married filing jointly
Tax Rate: 12% Fedral 9% state
State: Iowa
Age: 25 wife 27
AA: 100/0
income 50K
Right now we have roughly 87K invested between work traditional/Roth 401k and Roth's and HSA (FXIAX) (FSMAX)(VTIAX)(VTSAX)(TSLA)


I have 2 tesla shares bought at 1500 in HSA. I'm conflicted on buying more or not. Alot of hype about once in a lifetime stock and FOMO going on, it could go up it could go down.. Thoughts single stock. no more than my total net worth I know this.
Tesla has a PE of 1,000 and is twice the market cap off Honda.

I would sell it if I owned any.
deikel
Posts: 1131
Joined: Sat Jan 25, 2014 7:13 pm

Re: Single Stock (TSLA)

Post by deikel »

owning single stock is not a strategy, you will never have any information that other investors do not have before you. So if you go investing in single stock, you are just chasing trends (so skip all the fundamentals rubbish) - you can go after trends or don't, but its no long term strategy

Now, holding it in an HSA is particularly bad. An HSA has the function to pay for medical expenses in an emergency, so if that happens during a downturn of that particular stock (say Elon has another dope filled interview and looses government contracts) you don't have the money you need.

You are still early in the game, but come up with a strategy you want to follow for success long term and eventually wean your self off the stock games or the 'lets get rich quick' trends....they get boring after a while anyway.
Everything you read in this post is my personal opinion. If you disagree with this disclaimer, please un-read the text immediately and destroy any copy or remembrance of it.
am
Posts: 3525
Joined: Sun Sep 30, 2007 9:55 am

Re: Single Stock (TSLA)

Post by am »

FoolMeOnce wrote: Sat Aug 22, 2020 10:36 pm
Unbrokenspark wrote: Sat Aug 22, 2020 5:28 pm Alot of hype about once in a lifetime stock
Maybe for those that bought years ago when it was around $20 or $30. You're a little late. Let's say it somehow doubles again in a year. That's not once in a lifetime. Your not missing much anymore.
What’s unfortunate is that bogleheads would talk you out of buying any Tesla when it was 20-30 dollars. Take a 5-10% percentage of your account and invest in companies, crypto and anything else you think has potential.
ShadowRegent
Posts: 128
Joined: Sun Jan 04, 2015 12:52 pm

Re: Single Stock (TSLA)

Post by ShadowRegent »

am wrote: Sun Aug 23, 2020 12:42 pm What’s unfortunate is that bogleheads would talk you out of buying any Tesla when it was 20-30 dollars. Take a 5-10% percentage of your account and invest in companies, crypto and anything else you think has potential.
What's unfortunate is that Bogleheads can't see into the future better than anyone else. Anyone can look backwards and find investments that will outperform the market. We just don't find ourselves talking much about the vast majority that do not. That being said, if you choose to gamble with a predefined percentage of your portfolio, I think that's perfectly fine. I personally think that 10% is far too much, but the important thing is having a plan and sticking to it.
Vihoo
Posts: 57
Joined: Wed Jun 05, 2019 11:48 pm

Re: Single Stock (TSLA)

Post by Vihoo »

Based on experience, those who usually tell others to either not buy or just sell TSLA - are those who haven't spent much time behind the wheel of one or don't own the stock - and find some random analysis metric to justify why NOT to buy it.

Those who either own a Tesla or own shares of TSLA - just tell others to stick with it cause they've seen the light or $$$; or don't care and just want to feel like they're on board a success story.

I own a Model 3. Haven't been to a gas station in maybe 6 months. Also just completed a successful 10 hour car ride while mostly in auto-pilot. In other words, I'm heavily biased in my opinion.

I have no reason to sell my TSLA. Currently up +400% on the common stock (Technically it is more but I don't know how to calculate it cause I took out all my initial investment and it's the profit that I am up 400% on). I'm happy to ride it out and not pay capital gains anytime soon.

My dad is currently up +900% on TSLA leap options (June 2022) with no indication of selling anytime soon. (He owns a Model Y)

I'll acknowledge that the "majority" of quick money has likely already been made by now.

TSLA's eventual march to become a trillion $ company could take a while as Elon spends more of his attention on his 7 (?) other multi-billion dollar companies...
Vihoo
Posts: 57
Joined: Wed Jun 05, 2019 11:48 pm

Re: Single Stock (TSLA)

Post by Vihoo »

Monsterflockster wrote: Sun Aug 23, 2020 12:14 am Well if I had bought Tesla stock instead of their car I’d be a millionaire. 🤪 Oh well.
Did both at the same time. Worked out very well.
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JonnyDVM
Posts: 2268
Joined: Wed Feb 12, 2014 6:51 pm
Location: Atlanta, GA

Re: Single Stock (TSLA)

Post by JonnyDVM »

am wrote: Sun Aug 23, 2020 12:42 pm
FoolMeOnce wrote: Sat Aug 22, 2020 10:36 pm
Unbrokenspark wrote: Sat Aug 22, 2020 5:28 pm Alot of hype about once in a lifetime stock
Maybe for those that bought years ago when it was around $20 or $30. You're a little late. Let's say it somehow doubles again in a year. That's not once in a lifetime. Your not missing much anymore.
What’s unfortunate is that bogleheads would talk you out of buying any Tesla when it was 20-30 dollars. Take a 5-10% percentage of your account and invest in companies, crypto and anything else you think has potential.
Many would try. Some would tell you 5-10% in individual stocks is fine and makes life more interesting.
I’d trade it all for a little more | -C Montgomery Burns
Anon9001
Posts: 682
Joined: Fri Dec 20, 2019 9:28 am
Location: भारत

Re: Single Stock (TSLA)

Post by Anon9001 »

This is basically a Momentum stock so I would plan a exit if the stock is at 52 week low and is having negative price momentum for 1 year (excluding last month). Don't be emotional about it.
Cycle
Posts: 1692
Joined: Sun May 28, 2017 7:57 pm
Location: Minneapolis

Re: Single Stock (TSLA)

Post by Cycle »

I've ridden in the back of a model S when an Uber X driver was driving one.

It's a car, equivalent to the other cars I get rides in. I don't care what brand it is, so long as it shows up and gets me there safely. I don't care if it's electric.

It's pretty interesting there is so much hype over this company. I know they make batteries and solar roof tiles too, but I don't see that being a thing the 50,000 other residents of our downtown would be purchasing. Many of the buildings have panels, but not Tesla.
Never look back unless you are planning to go that way
FrownLines
Posts: 36
Joined: Tue Jan 21, 2020 10:27 pm

Re: Single Stock (TSLA)

Post by FrownLines »

I've been in and out of TSLA, ZM, DOCU, AMZN, etc several times this year to make pin money. It's straight up gambling. Good luck!
Prettyfrtnt
Posts: 212
Joined: Fri Aug 23, 2019 6:28 pm

Re: Single Stock (TSLA)

Post by Prettyfrtnt »

Vihoo wrote: Sun Aug 23, 2020 1:20 pm Based on experience, those who usually tell others to either not buy or just sell TSLA - are those who haven't spent much time behind the wheel of one or don't own the stock - and find some random analysis metric to justify why NOT to buy it.

Those who either own a Tesla or own shares of TSLA - just tell others to stick with it cause they've seen the light or $$$; or don't care and just want to feel like they're on board a success story.

I own a Model 3. Haven't been to a gas station in maybe 6 months. Also just completed a successful 10 hour car ride while mostly in auto-pilot. In other words, I'm heavily biased in my opinion.

I have no reason to sell my TSLA. Currently up +400% on the common stock (Technically it is more but I don't know how to calculate it cause I took out all my initial investment and it's the profit that I am up 400% on). I'm happy to ride it out and not pay capital gains anytime soon.

My dad is currently up +900% on TSLA leap options (June 2022) with no indication of selling anytime soon. (He owns a Model Y)

I'll acknowledge that the "majority" of quick money has likely already been made by now.

TSLA's eventual march to become a trillion $ company could take a while as Elon spends more of his attention on his 7 (?) other multi-billion dollar companies...
Very well put post. Speaking as a car owner and a stockholder up many multiples... When I first got one I told everyone I could on bogelheads a few years ago: this was apple 2007 with an iPhone. Few listened. Many mocked and shorted (then poof they were gone). Lots of FUD. Many don’t understand “exponential growth fallacy.” Many refuse to see 50%y/y growth and how explosive that is. Many naysayers opinions look rather wrong. “Made in a tent.” “No profit.” “He’s crazy.” And usually they haven’t driven one and are uninformed. But eventually even the light comes to folks like even Jim Cramer. You can join the bandwagon now or you can wait till 4/5 cars on your street are Tesla’s.

Buy and hold until granddaughter sells for ticket to mars. Would not exit position at $20000 a share tomorrow. Many like minded.
TNWoods
Posts: 123
Joined: Sun Feb 10, 2019 10:04 am

Re: Single Stock (TSLA)

Post by TNWoods »

TSLA's P/E ratio is over 1000.

I own quite a few individual stocks, so I disagree with all the zealots on these forums who always decry owning individual stocks as "nothing but gambling".

But that's how I view TSLA.

The market is irrational, but TSLA takes that to a couple whole other levels.

$3000 is not much, so do what you want, but man, nothing justifies their valuation right now. Nothing.

TNWoods
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F150HD
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Re: Single Stock (TSLA)

Post by F150HD »

I also wonder....in a current & post-Covid economy many may no longer be driving to work, rather working from home, necessitating fewer new vehicles (?) Its difficult to avoid that thought for Tesla and other automakers.
Sure, one goes on vacation or to dinner on Friday night but, guessing most of us are driving significantly less now then 6 months ago.
atdharris
Posts: 625
Joined: Wed Jan 02, 2019 3:18 pm

Re: Single Stock (TSLA)

Post by atdharris »

I admit I bought 2 shares around $900 just for fun. I never imagined it would soar to $2000 like it has. Tesla is more than a car company and has its visionary leader still at the helm (like Amazon). As long as Tesla is a small percentage of what you have, I don't see an issue owning some of it.
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