3 ms·
I’m not surprised, because all of those things you mention are different and much more specific than I’m referring to. The vague idea that “if Tesla the compan
by pgwhalen 4y ago
I’m not surprised, because all of those things you mention are different and much more specific than I’m referring to.
The vague idea that “if Tesla the company does well, TSLA the stock goes up, in a loose sense” is much simpler and it’s hard for me to imagine there are many retail investors that don’t understand that on some level.
- nightski 4y agoI'll give you that (although that principle is so generic it isn't even actionable in practice). But if you asked the average person in the U.S. who has a portfolio (I believe it's only like 50% of Americans hold stock), I'd imagine a good deal of them couldn't even tell you what companies they own.
- pgwhalen 4y agoProbably true (given that it’s true of me and I work in finance), but again irrelevant to my point. I’m not sure how the principle is not actionable in practice. Surely recognizing that everyone has iPhones and that trend isn’t stopping is enough for a lay person to recognize AAPL is reasonably safe as an investment.
- nightski 4y agoAAPL might be a safe bet, but maybe not? I'm sure the company will be profitable for quite some time but stock prices are not driven by profits as you know. They are built on expectations. A lot of the expectation for Apple is built into it's $2T market cap. You might of thought AAPL was a safe bet at the beginning of the year, but now it's down 22.23%. At this point we don't know if it's going to take a year to recover or a decade. So I know I am preaching to the choir but it's not just "company doing well so stock is safe". There's the context of the overall economy not to mention a lot of companies look like they are doing great until one day they don't.