I took a 10yr loan to buy TSLA shares [Austria]

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Topic Author
herbert_21
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by herbert_21 »

happyisland wrote: Fri Nov 20, 2020 2:49 pm Friendly advice to the OP: if you haven't already, spend some quality time reading through the entirety of the Bogleheads wiki, and maybe a Bogleheads book (if you haven't already). Both of those resources will present strong evidence that stock picking is not a good idea.
@happyisland

Just wanted to let you know the following:
I do read all your comments
I ordered the book. It's the beauty of AMZN that it's already on the Kindle, ready to read
I do appreciate your advise

To be continued ...
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4nursebee
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by 4nursebee »

What is the end game goal and how to best achieve that?

What is it that motivated you to do what you did and then come here baiting the BH?
Pale Blue Dot
WienerG
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by WienerG »

Hmmmm.....3/4 of the portfolio in 3 techy large growth stocks. Investing on borrowed money. What could possibly go wrong?

Yes, you're speculating. Hope it works out for you. Sincerely. But I certainly wouldn't recommend what you're doing.
OP,
Servus! You have single company risk with Tesla. You only need Elon Musk to tweet about taking his company private again / about pedoboy etc & the stock could tank. You are on a site that advocates diversification & low cost. If Tesla goes belly up then another company will join the S&P 500 and I'll continue sleeping well. For you, you would have no investment and have loan debt to rub salt in the wound.

You're quite young & I would recommend you review the fate of Barings Bank, the Enron power company or take a look at Lehman Brothers (or in Austria Meinl Bank, BAWAG - Plastik Sackl Geld!). IMHO single company risk is not worth it.

I wish you well, however, be warned you will not convince many here that your approach is nothing other than speculating and I would advise not wasting more valuable effort / time on doing so. You have your plan & you love your girl... Get on and enjoy life! -> that is the reason BH's invest the way they do, so they can get on and enjoy life w/o worrying about stock tickers every day.

WienerG
Last edited by WienerG on Sat Nov 21, 2020 12:00 pm, edited 2 times in total.
manu
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by manu »

2 papers from this week's Rational Reminder podcast that both say it's a bad idea :D

- When stock prices have uncertain future profitability, present value can widely fluctuate due to the convex (exponentially increasing) nature of the function. Reduced uncertainty reduces stock prices. See Pastor and Veronesi, Was there a NASDAQ bubble in 1990s?

- First new technologies are tested in small industries. Their discount rates only reflect their idiosyncratic (single) risk, not market risk. Once new technologies that increase productivity are adopted by old firms, discount rates go up as idisyncratic risk becomes systemic risk, thus reducing current valuations. See Pastor and Veronesi, Tech revolutions and stock prices
srt7
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by srt7 »

Read your first 2 posts so I may have missed something in later ones.

First off ... take Robert Kiyosaki's advice with a pound of salt. Lot of it is common sense and rest is nonsense so no real benefit in following his advice (well ... maybe except for understanding income vs. wealth rich)

Now coming to you ... you don't have an emergency fund but bought 75 TSLA's on loan and think you should buy more ... what brought you to this forum? I'm genuinely curious what you expect from a forum that is principled on long term index based (mostly buy the entire market) investing strategies.
:confused
I can't think of anything more luxurious than owning my time. - remomnyc
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happyisland
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by happyisland »

herbert_21 wrote: Fri Nov 20, 2020 5:33 pm
@happyisland

Just wanted to let you know the following:
I do read all your comments
I ordered the book. It's the beauty of AMZN that it's already on the Kindle, ready to read
I do appreciate your advise

To be continued ...
Happy reading!
As I've mentioned from time to time on this forum, I truly feel the https://www.bogleheads.org/wiki/Main_Page changed my life. That, and the wonderful, generous high-quality advice I've gotten from the forums. :sharebeer
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wander
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by wander »

Op, I think you like to put words into people's mouth. If you read people's posts, you need to read the whole discussion before quoting on somebody and assuming that's fact.
kimura king
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by kimura king »

Anon9001 wrote: Fri Nov 20, 2020 1:44 am
NewMoneyMustBeSmart wrote: Thu Nov 19, 2020 5:03 pm
Anon9001 wrote: Wed Nov 18, 2020 8:30 am
Well actually I am much younger than 20 years from 60. Counting from my current age it would be 39 years for me to go to 60. But the point still stands. For a guy who is 39 (referring to OP) the risk preferences will be vastly different from some-one who is 60 so it would not be wise to avoid taking some risk if the OP can afford to lose the money.
I am very sorry, but you are 21. You know almost nothing. Learn don't preach.
I am very sorry but you are all random strangers who I don't know real name of. Why should I trust you people any more than I should trust average person on Reddit,Youtube? I would be more comfortable "learning" if this was not a anonymous forum in which anyone with no qualifications can post.
For clarity, I'm a stranger with a $600 pair of alligator shoes. You’re talking to the Rolex wearin’, diamond ring wearin’, kiss stealin’, wheelin’ dealin’, limousine ridin’, jet flyin’ son of a gun. And I’m having a hard time holding these alligators down.
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happyisland
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by happyisland »

kimura king wrote: Sat Nov 21, 2020 2:21 pm]

For clarity, I'm a stranger with a $600 pair of alligator shoes. You’re talking to the Rolex wearin’, diamond ring wearin’, kiss stealin’, wheelin’ dealin’, limousine ridin’, jet flyin’ son of a gun. And I’m having a hard time holding these alligators down.
Whoo!
Valuethinker
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by Valuethinker »

WienerG wrote: Sat Nov 21, 2020 2:06 am
Hmmmm.....3/4 of the portfolio in 3 techy large growth stocks. Investing on borrowed money. What could possibly go wrong?

Yes, you're speculating. Hope it works out for you. Sincerely. But I certainly wouldn't recommend what you're doing.
OP,
Servus! You have single company risk with Tesla. You only need Elon Musk to tweet about taking his company private again / about pedoboy etc & the stock could tank. You are on a site that advocates diversification & low cost. If Tesla goes belly up then another company will join the S&P 500 and I'll continue sleeping well. For you, you would have no investment and have loan debt to rub salt in the wound.

You're quite young & I would recommend you review the fate of Barings Bank, the Enron power company or take a look at Lehman Brothers (or in Austria Meinl Bank, BAWAG - Plastik Sackl Geld!). IMHO single company risk is not worth it.

I wish you well, however, be warned you will not convince many here that your approach is nothing other than speculating and I would advise not wasting more valuable effort / time on doing so. You have your plan & you love your girl... Get on and enjoy life! -> that is the reason BH's invest the way they do, so they can get on and enjoy life w/o worrying about stock tickers every day.

WienerG
Wirecard comes to mind.

Apparently it had a big following among German retail investors.
WienerG
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by WienerG »

Valuethinker wrote: Sat Nov 21, 2020 5:26 pm
WienerG wrote: Sat Nov 21, 2020 2:06 am
Hmmmm.....3/4 of the portfolio in 3 techy large growth stocks. Investing on borrowed money. What could possibly go wrong?

Yes, you're speculating. Hope it works out for you. Sincerely. But I certainly wouldn't recommend what you're doing.
OP,
Servus! You have single company risk with Tesla. You only need Elon Musk to tweet about taking his company private again / about pedoboy etc & the stock could tank. You are on a site that advocates diversification & low cost. If Tesla goes belly up then another company will join the S&P 500 and I'll continue sleeping well. For you, you would have no investment and have loan debt to rub salt in the wound.

You're quite young & I would recommend you review the fate of Barings Bank, the Enron power company or take a look at Lehman Brothers (or in Austria Meinl Bank, BAWAG - Plastik Sackl Geld!). IMHO single company risk is not worth it.

I wish you well, however, be warned you will not convince many here that your approach is nothing other than speculating and I would advise not wasting more valuable effort / time on doing so. You have your plan & you love your girl... Get on and enjoy life! -> that is the reason BH's invest the way they do, so they can get on and enjoy life w/o worrying about stock tickers every day.

WienerG
Wirecard comes to mind.

Apparently it had a big following among German retail investors.
Yes Valuethinker. Wirecard is a more recent & very relevant example of single company risk!
Maverick3320
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by Maverick3320 »

I don't understand the point of the original post. You come on Bogleheads, of all places, and then discuss your strategy to borrow money to purchase a singe stock.

Then when people say your move is foolish, you get upset. The small minority that says "do what you want", you thank them. If you are so much smarter than the Boglehead masses, why bother to stoop to our level and post here? Isn't being an expert stock picker and knowing something about Tesla that apparently no one else knows enough for you?


What is the purpose of your post?
spectec
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by spectec »

I just want to thank the OP for speculating. After all, if there weren't speculators my index fund might not be reflecting accurate market prices. Somebody has to take the risks, pocket the excess profits, and suffer the disproportionate losses.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers
Topic Author
herbert_21
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by herbert_21 »

Maverick3320 wrote: Sun Nov 22, 2020 7:20 am I don't understand the point of the original post. You come on Bogleheads, of all places, and then discuss your strategy to borrow money to purchase a single stock.

Then when people say your move is foolish, you get upset. The small minority that says "do what you want", you thank them. If you are so much smarter than the Boglehead masses, why bother to stoop to our level and post here? Isn't being an expert stock picker and knowing something about Tesla that apparently no one else knows enough for you?

What is the purpose of your post?
Who said it's foolish? Those guys that compare Tesla with Wirecard?

Sorry. There were friendly comments, helpful comments, critical comments and worthless comments. I read all of them.

I was wondering if talking about a taboo (investing on margin) is acceptable, and then I decided to give it a go. As I wrote in the opening post, I don't really have a lot of friends to discuss the topic. I thought that a Bogle forum could be the place to discuss this, and my personal situation.

P.S. Better comparison to Wirecard is Nikola.
Last edited by herbert_21 on Mon Nov 23, 2020 7:04 am, edited 1 time in total.
Topic Author
herbert_21
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by herbert_21 »

Lets have a plain view on your opinion of Tesla. TSLA is currently 5times smaller than Saudi Aramco, biggest company market cap wise. If you are looking on continuing 30% return p.a. over the next decade, you are just saying, that Tesla will be 13,7 larger what it is now, despite the fact, that there is already calculated in increase of earnings by 4400%.
I have a different suggestion:
Let"s look at the 10 biggest companies not by market cap, but by revenue. Most of them are energy companies.

Now let's imagine some of their revenues is replaced with green energy. I tend to believe that this very likely and that this will happen within the next 20 years.

Someone asked where future Tesla revenues could come from. In last earnings call, Tesla's CEO mentioned that the energy business could be as big as automotive business. This is the far-out future (5+ years).

So, apart from supporting the world's transisition to sustainable energy, I also believe that this stock could could up to $2 trillion, which would be x4 from here.

Game plan
So, since Tesla stock has increased in value, my plan is now to repay about $10k and then refinance with cheaper interest rate. Either.with mortage on my house or with 1,25% interest at Degiro broker. I will repay small loans first, using the "debt snowball" method just in case someone is interested.

I am carefully monitoring my Alibaba investment. There is some risk of delisting in the US.
Kingswood
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by Kingswood »

I do not get your point, can you explain more?
First oil industry (traditional energy sector) is definitely not replaceable by home roof solar panels only, not even closely. Majority of electricity for EV will still be produced by large power plants where Teslas share will be 0, as it is retail company.
Revenue is also actually not a good indicator of anything, as noone will benefit from revenue. Net Income or earnings on level of EBITDA is important. Commodities and energy sector itself happens to have quite low margin (unlike retail), as noone cares who exactly produced your energy (price is main driver here, not a company brand). Solar panels are also quite a commidity like clean energy item, as you can quite easily copy the technology and produce them mass scale in China and distribute them around the world... unlike things like wind blades for power plants... So I really do not care if Tesla is going to be a part of the energy sector or not, its not important at all.

I actually thought, you knew that the only price point potential for Tesla is their autonomous driving system. Which however is not ahead of competition as Tesla tries to look like.

Anyway, do whatever you want. You already heard a lot of opinions here, I do not get your point of view on tesla stock by fundamental value and time will tell easily if you are right or not. There is long way ahead of tesla to even prove their current valuation of 900+ P/E , so there is no necessity to talk about valuation growth now, free cash flow will always ultimately decide.
Valuethinker
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by Valuethinker »

herbert_21 wrote: Sun Nov 22, 2020 2:30 pm
Lets have a plain view on your opinion of Tesla. TSLA is currently 5times smaller than Saudi Aramco, biggest company market cap wise. If you are looking on continuing 30% return p.a. over the next decade, you are just saying, that Tesla will be 13,7 larger what it is now, despite the fact, that there is already calculated in increase of earnings by 4400%.
I have a different suggestion:
Let"s look at the 10 biggest companies not by market cap, but by revenue. Most of them are energy companies.

Now let's imagine some of their revenues is replaced with green energy. I tend to believe that this very likely and that this will happen within the next 20 years.

Someone asked where future Tesla revenues could come from. In last earnings call, Tesla's CEO mentioned that the energy business could be as big as automotive business. This is the far-out future (5+ years).

So, apart from supporting the world's transisition to sustainable energy, I also believe that this stock could could up to $2 trillion, which would be x4 from here.

Game plan
So, since Tesla stock has increased in value, my plan is now to repay about $10k and then refinance with cheaper interest rate. Either.with mortage on my house or with 1,25% interest at Degiro broker. I will repay small loans first, using the "debt snowball" method just in case someone is interested.

I am carefully monitoring my Alibaba investment. There is some risk of delisting in the US.
Leveraging when you are young to buy equities has some logic *if* you cannot be called. I.e. if in a major market downturn, you can hold your position (and psychologically, your nerve). Thus for example if your job is secure and you can increase your mortgage.

That's borrowing long term to finance purchases of equity indices (tracker funds). However we should remember Japan - the possibility of a 30 year bear market. That, plus memories like the UK market losing 80% in 18 months in the middle of the 1970s, haunts us all. I can see a set of macroeconomic or geopolitical events which cause an enormous market crash. And then there are the "black Swans", the "unknown unknowns"-- the world's financial regulators had prepared for something like Lehman Brothers insolvency, but when it actually happened, it turned out no one was really ready. And Lehman was a relatively small bank in the scheme of things - roughly $480bn of assets.

However to buy individual stocks? You are betting that somehow you have seen something in a stock which the market as a whole has missed. All those analysts at all those investment banks, who speak to the company regularly and pour over its figures AND all those incredibly bright investors with access to the best databanks and research.
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herbert_21
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by herbert_21 »

Let's evaluate my decision on 21/12/2020
Valuethinker
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by Valuethinker »

herbert_21 wrote: Mon Nov 23, 2020 10:37 am Let's evaluate my decision on 21/12/2020
You mean 21/12/2025?

Or 21/12/2030?

Most of us pay capital gains taxes on realisation of profits. My average stock holding period, now, is probably over 10 years.

If I traded more often than that the tax drag on returns would kill me. Losing say 28% every time I sell.
Valuethinker
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by Valuethinker »

Another thing I should mention is that while mortgage money is typically 25 or 30 years to repay (but not in your late 50s!) Outside USA mortgages are not usually fixed rate. Maybe 5 years max?

Thus if there is a surge in interest rates while you are in the middle of a bear market, you can get crushed even though your loan cannot be called.
WienerG
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by WienerG »

herbert_21 wrote: Sun Nov 22, 2020 1:47 pm
Maverick3320 wrote: Sun Nov 22, 2020 7:20 am I don't understand the point of the original post. You come on Bogleheads, of all places, and then discuss your strategy to borrow money to purchase a single stock.

Then when people say your move is foolish, you get upset. The small minority that says "do what you want", you thank them. If you are so much smarter than the Boglehead masses, why bother to stoop to our level and post here? Isn't being an expert stock picker and knowing something about Tesla that apparently no one else knows enough for you?

What is the purpose of your post?
Who said it's foolish? Those guys that compare Tesla with Wirecard?

Sorry. There were friendly comments, helpful comments, critical comments and worthless comments. I read all of them.

I was wondering if talking about a taboo (investing on margin) is acceptable, and then I decided to give it a go. As I wrote in the opening post, I don't really have a lot of friends to discuss the topic. I thought that a Bogle forum could be the place to discuss this, and my personal situation.

P.S. Better comparison to Wirecard is Nikola.
OP,

No one compared Wirecard to Tesla - if that is what you understood, then you are wildly mistaken. We indicated in clear terms that by investing in single companies you have an increased risk when compared to diversified index funds. Wirecard is an example of a fintech that suddenly disappeared after posting very strong results. Take Volkswagen and the exhaust fume scandel - such an event could wipe out Tesla. We were purely warning you in no uncertain terms that investing in single companies carries a significant risk. And borrowing to do so adds to that risk. The consensus is that you are speculating (very risky). I have seen many get burnt doing what you're doing.

If you feel this advice is worthless (as is your right), then I do not understand why you posted here in the first place. If you only want to hear confirmations of your risky investment approach, then you are in the wrong place - this is a site focussed on diversification and long term gains and constructively challenges any post. Let's agree to circle back to your portfolio on 31.12.2050 to see how well you did compared to others here. I for one will be happily retired and sleeping well at night.

I honestly wish you well in your endevours.

WienerG
Valuethinker
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by Valuethinker »

WienerG wrote: Wed Nov 25, 2020 5:00 am
herbert_21 wrote: Sun Nov 22, 2020 1:47 pm
Maverick3320 wrote: Sun Nov 22, 2020 7:20 am I don't understand the point of the original post. You come on Bogleheads, of all places, and then discuss your strategy to borrow money to purchase a single stock.

Then when people say your move is foolish, you get upset. The small minority that says "do what you want", you thank them. If you are so much smarter than the Boglehead masses, why bother to stoop to our level and post here? Isn't being an expert stock picker and knowing something about Tesla that apparently no one else knows enough for you?

What is the purpose of your post?
Who said it's foolish? Those guys that compare Tesla with Wirecard?

Sorry. There were friendly comments, helpful comments, critical comments and worthless comments. I read all of them.

I was wondering if talking about a taboo (investing on margin) is acceptable, and then I decided to give it a go. As I wrote in the opening post, I don't really have a lot of friends to discuss the topic. I thought that a Bogle forum could be the place to discuss this, and my personal situation.

P.S. Better comparison to Wirecard is Nikola.
OP,

No one compared Wirecard to Tesla - if that is what you understood, then you are wildly mistaken. We indicated in clear terms that by investing in single companies you have an increased risk when compared to diversified index funds. Wirecard is an example of a fintech that suddenly disappeared after posting very strong results. Take Volkswagen and the exhaust fume scandel - such an event could wipe out Tesla. We were purely warning you in no uncertain terms that investing in single companies carries a significant risk. And borrowing to do so adds to that risk. The consensus is that you are speculating (very risky). I have seen many get burnt doing what you're doing.

If you feel this advice is worthless (as is your right), then I do not understand why you posted here in the first place. If you only want to hear confirmations of your risky investment approach, then you are in the wrong place - this is a site focussed on diversification and long term gains and constructively challenges any post. Let's agree to circle back to your portfolio on 31.12.2050 to see how well you did compared to others here. I for one will be happily retired and sleeping well at night.

I honestly wish you well in your endevours.

WienerG
WienerG

The "comparing Wirecard to Tesla" thing is known in English as a "straw man argument". Create an argument that you allege the other side is making, that is extreme, and then knock it down.

Because schools no longer teach rhetoric and reasoning (or so it seems) we are deficient in understanding how arguments are deployed and their flaws. We can see that with "fake news" -- this tendency to fail to interrogate sources, eg on F-book posts -- failure to check snopes.com for example (I now give regularly to snopes.com). You see it in the widespread belief in various conspiracy theories. I certainly did not learn this in my high school nor undergraduate education, mostly.

Perhaps Continentals are better educated in school and this is an Anglo-Saxon problem? When you add an understanding of behavioural economics - of how humans reason in the real world, and what our predictable biases (see Dan Arielly "Predictably Irrational") are, then it can become quite powerful.

I agree the problem for a thinly capitalized company like Tesla is it lacks deep reserves to overcome a major product flaw or other accident (pun ;-)). It is like a thin very fast growing plant coming out of the undergrowth. Also there is Musk's tendency to engage in complex corporate deals with companies that he has a stake in, when the commercial logic with Tesla itself is weak. And his random personality (calling one of the cave rescuers a "pedo" etc).

I also agree re justification of a decision already taken. To be fair to Herbert21 he seems genuinely to be listening to the arguments we make but only he could know what, inside himself, would actually change his mind.

But it's not an approach we would endorse here. On the main US investing board, there's been good discussions of the possibilities of leveraging up at a young age to buy more equities (as suggested in a book by Yale U professor Barry Nalebuff. I don't know what Robert Shiller, also of Yale, thinks of that idea). Indeed there was an epic thread with poster "market timer" about his experiences doing same in 2008-09, right during the Crash. (FWIW, he now has a very conservative portfolio with something like 25%+ cash).
glorat
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by glorat »

Valuethinker wrote: Wed Nov 25, 2020 8:46 am When you add an understanding of behavioural economics - of how humans reason in the real world, and what our predictable biases (see Dan Arielly "Predictably Irrational") are, then it can become quite powerful.

I also agree re justification of a decision already taken. To be fair to Herbert21 he seems genuinely to be listening to the arguments we make but only he could know what, inside himself, would actually change his mind.
Taking behaviour and psychology into mind here, let's try to do something constructive in this thread. Let's assume Herbert21 has now figured out Deep Inside that this endeavour is a bad idea. However, psychology is an important part. Admitting you're wrong is tough. Ignoring FOMO is tough, especially if one has conviction in one's market selection.

What would be a sensible path to transition to a portfolio more aligned with boglehead philosophy that doesn't pave the road with regret?

For example, simply saying de-lever everything, sell it all and buy back into a 3-fund portfolio is probably a terrible idea from a human perspective. IMHO. There is a good chance Tesla will be fine and the FOMO will wreck any long term Bogleheadness. There will be no personal learning. "If it were me", is also arguably not helpful advice since we are already the converted. It's more about setting a path for one's mindset to be gradually won over - allowing small mistakes to learn from without blowing up with fatal mistakes.
Escapevelocity
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by Escapevelocity »

If not for threads like this, wouldn't this forum get kind of boring? I mean how many ways can you debate the finer points of a 3 fund portfolio?
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Ramjet
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by Ramjet »

Escapevelocity wrote: Wed Nov 25, 2020 10:41 am If not for threads like this, wouldn't this forum get kind of boring? I mean how many ways can you debate the finer points of a 3 fund portfolio?
Was thinking it but you said it!
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Ramjet
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by Ramjet »

Maverick3320 wrote: Sun Nov 22, 2020 7:20 am I don't understand the point of the original post. You come on Bogleheads, of all places, and then discuss your strategy to borrow money to purchase a singe stock.
Some of the most successful threads on Bogleheads have been on unconventional topics, e.g., Market Timers infamous thread and Hedfundies Excellent Adventure. Plus, the OP seems like he knew what he was getting into.
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4nursebee
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by 4nursebee »

Ramjet wrote: Wed Nov 25, 2020 11:02 am
Maverick3320 wrote: Sun Nov 22, 2020 7:20 am I don't understand the point of the original post. You come on Bogleheads, of all places, and then discuss your strategy to borrow money to purchase a singe stock.
Some of the most successful threads on Bogleheads have been on unconventional topics, e.g., Market Timers infamous thread and Hedfundies Excellent Adventure. Plus, the OP seems like he knew what he was getting into.
Really? Is this such a great pick? Everyone is on it, not so great a choice. TSLA is beginning it's markup and distribution phase.
Pale Blue Dot
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Ramjet
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Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by Ramjet »

4nursebee wrote: Wed Nov 25, 2020 12:02 pm
Ramjet wrote: Wed Nov 25, 2020 11:02 am
Maverick3320 wrote: Sun Nov 22, 2020 7:20 am I don't understand the point of the original post. You come on Bogleheads, of all places, and then discuss your strategy to borrow money to purchase a singe stock.
Some of the most successful threads on Bogleheads have been on unconventional topics, e.g., Market Timers infamous thread and Hedfundies Excellent Adventure. Plus, the OP seems like he knew what he was getting into.
Really? Is this such a great pick? Everyone is on it, not so great a choice. TSLA is beginning it's markup and distribution phase.
I don't like when people are discouraged to post because the topic is not "Boglehead" enough. That is my point, nothing else.
checkyourmath
Posts: 74
Joined: Wed Nov 18, 2020 12:46 pm

Re: I took a 10yr loan to buy TSLA shares [Austria]

Post by checkyourmath »

I enjoy the random discussion but a PE ratio of 1000 is slightly too high for me. I am much more comfortable in the PE range of 15-25. You have to wonder what the car world will look like in a 1000 years from now when Tesla's earnings have equaled the value of the company. My recommendation is the 30 year mortgage needs to be thrown out the door. We need 500 and 1000 year mortgages.
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