4 ms·

This is when you switch to the other age-old strategy: selling ovepriced shares.

ComputerGuru 6y ago
Yes, that’s the easy and obvious answer. The hard question: where do you park that money? People are investing in tech stocks because everything else is so uncertain right now.
- alltakendamned 6y ago
  I've been selling off tech funds partially and investing the proceeds in total market funds (which are still ~20% tech), just as a way to rebalance. It's hard to predict the next "winner", maybe it remains tech, maybe it becomes something else.
- oh_sigh 6y ago
  I paid off my 25 years remaining mortgage after selling some long-held TSLA, because I really didn't know where else to put it, especially with the election uncertainty coming up. I feel a little bit cowardly doing this, but I'm in tech and aapl/amzn/goog is a fair chunk of my portfolio and don't want to put even more of my eggs in one basket.
  - ComputerGuru 6y ago
    Better cowardly than broke and homeless.
  - marketgod 6y ago
    I really recommend rethinking that. TSLA is the future of the market. Hold it forever.
robjan 6y ago
You first have to define "overpriced".
- skohan 6y ago
  The textbook answer would be when the p/e ratio is over 25 no? Tesla is at 1,151.43.
  - humanlion87 6y ago
    That seems to be a value that would be valid for a different era. I am not sure whether we can go by those same numbers for the current market environment (especially after the QE starting from 2008/09).
    - skohan 6y ago
      Would you agree that over 1k seems a bit high?
      - MacsHeadroom 6y ago
        I'm not actually sure it is. 1000 is two orders of magnitude. One for the 2008/9 interventions and shift and one for the current. 1000 could even be low.
        skohan 6y ago
        I think QE maybe explains some of the decoupling of market cap from real-world value, but I'm not sure it justifies it.
  - dannyw 6y ago
    P/E is still relevant, but you also got to consider future growth. Would you rather buy a 20 P/E company that is growing by 1% a year; or would you rather buy a 200 P/E company that is growing by 30% a year?
    - loxs 6y ago
      I absolutely search and buy the former... there is only so much growth Tesla can realistically sustain... and currently it's "not any more". Same for all of the Big Tech. Give me Rio Tinto and I buy it any day.

Yes, that’s the easy and obvious answer. The hard question: where do you park that money? People are investing in tech stocks because everything else is so uncertain right now.

alltakendamned 6y ago
I've been selling off tech funds partially and investing the proceeds in total market funds (which are still ~20% tech), just as a way to rebalance. It's hard to predict the next "winner", maybe it remains tech, maybe it becomes something else.
oh_sigh 6y ago
I paid off my 25 years remaining mortgage after selling some long-held TSLA, because I really didn't know where else to put it, especially with the election uncertainty coming up. I feel a little bit cowardly doing this, but I'm in tech and aapl/amzn/goog is a fair chunk of my portfolio and don't want to put even more of my eggs in one basket.
- ComputerGuru 6y ago
  Better cowardly than broke and homeless.
- marketgod 6y ago
  I really recommend rethinking that. TSLA is the future of the market. Hold it forever.

robjan 6y ago

You first have to define "overpriced".

skohan 6y ago
The textbook answer would be when the p/e ratio is over 25 no? Tesla is at 1,151.43.
- humanlion87 6y ago
  That seems to be a value that would be valid for a different era. I am not sure whether we can go by those same numbers for the current market environment (especially after the QE starting from 2008/09).
  - skohan 6y ago
    Would you agree that over 1k seems a bit high?
    - MacsHeadroom 6y ago
      I'm not actually sure it is. 1000 is two orders of magnitude. One for the 2008/9 interventions and shift and one for the current. 1000 could even be low.
      - skohan 6y ago
        I think QE maybe explains some of the decoupling of market cap from real-world value, but I'm not sure it justifies it.
- dannyw 6y ago
  P/E is still relevant, but you also got to consider future growth. Would you rather buy a 20 P/E company that is growing by 1% a year; or would you rather buy a 200 P/E company that is growing by 30% a year?
  - loxs 6y ago
    I absolutely search and buy the former... there is only so much growth Tesla can realistically sustain... and currently it's "not any more". Same for all of the Big Tech. Give me Rio Tinto and I buy it any day.