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I put 100% of my net worth in TSLA when it was trading at $180 a couple months ago http://www.marketwatch.com/story/elon-musk-to-the-guy-who-invested-his-net-wo
by austenallred 10y ago
I put 100% of my net worth in TSLA when it was trading at $180 a couple months ago http://www.marketwatch.com/story/elon-musk-to-the-guy-who-invested-his-net-worth-in-tesla-we-wont-let-you-down-2016-11-17 http://www.marketwatch.com/story/elon-musk-to-the-guy-who-in....
I'm already up 40%, and I'm holding (though not adding to it as my net worth grows). Such an obvious, incredible company that Wall Street will undervalue until the end of time.
(For the record: I don't recommend doing this. I am in a unique situation where I can own the risk and earn out of it quickly if it goes to zero.)
- debt 10y agouhhhhh to anyone reading this: the above is a terrible idea
- austenallred 10y agoDefinitely not something any sane money manager would recommend. I accept the risk. I could go to zero and crawl my way back pretty quickly.
- zump 10y agoErr, how?
- austenallred 10y agoBy making a lot more now than I used to
- deboflo 10y agoSeems crazy, but is actually a smart move. I own 3,000 Tesla shares. Purchased most shares at $30 after driving my model s from the factory. I have seen my net worth get cut in half when tsla went from $280 to $140, but never sold any. LinkedIn, a crappy website, was recently purchased by Microsoft for $30 billion. That's about how much Tesla's market capitalization was 2 months ago. Take a look at the all of the industries that will be impacted by the convergence of self driving cars, electric cars, and ride sharing. The global parking industry alone, is a $100 billion dollar industry. Other impacted industries include oil, traditional auto, car insurance, auto repair/servicing/maintenance, auto dealers, etc. Batteries are getting cheaper than anyone ever expected at this point. Solar recently became more competitive for electricity generation than fossil fuels. The dam is about to burst.
- austenallred 10y ago100% agreed
- spoinkaroo 10y agoI hope your lending your shares to short sellers!
- D_Alex 10y agoMaybe he is young and his net worth is very low compared to his anticipated future earnings??
- erikpukinskis 10y agoIf you can earn $150k a year, and your living expenses are $30k and you have no kids, you can squirrel away cash pretty fast. Tesla is certainly a risk, but it's one of the few companies that actually has a plan which would lead to a trillion dollar market cap if successful. It's not insane to put the bulk of your net worth in an investment like that if you only care about potential upside, not the downside.
- austenallred 10y agoMy salary is less than that, and I'm married with a kid, but I earn about as much from side projects as my salary, so it makes for quick saving (after taxes)
- praneshp 10y agoIf anyone reading this is new, please don't do this.
- tehlike 10y agothen you should leverage, if you are not afraid of losing it. buy/sell options, with some sane strategy you can even limit the down side.
- austenallred 10y agoI've never been good at the timing on options. I always buy too far out of the money and get burned. Closer to the money you might as well hold shares after fees.
- tehlike 10y agoYou can get deep in the money to leverage, no need to buy way out of money and gamble. also you can try different strategies (search them online, and pick the one according to your risk taste).
- kboukadoum 10y agoAgreed, if you have high conviction and really want exposure to the name, better idea to buy call options that are a bit out of the money then put your life savings on the line. You can still get asymmetric upside without putting all your capital to work.
- kilroy123 10y agoIf you read this. Please please sell and diversity.
- deleted 10y ago[deleted]
- Dribblenaught 10y agoI followed suit. Thanks for the awesome advice. Got my full 213K in it now.