investing

Tesla Shares and Elon Tweets

Ouch! Billionaires can be so harsh, lol.

Tesla CEO Elon Musk’s trust sold about $6.9 billion worth of stock in the company over the last week. Some of the shares were sold in part to satisfy tax obligations related to an exercise of stock options but he’s just cashing in on record stock price.

Despite falling 15% last week, Tesla shares are still up around 46% year to date following a record closing price of $1,229 the previous week.

I’ve been out of Tesla stock since Q3 so missed the recent run. I prefer the growth at a more reasonable price (GARP) approach to investing than the growth at a ludicrous price (pun intended) form of investing that Tesla and some of the recent high-flyers have become.

I still remember buying Tesla shares for the first time at around $40 per share back in 2016 and God I wish I had just held on or forgotten about em… what most people don’t realize is that Tesla shares were a ‘dog’ not moving much and only post-pandemic have the shares skyrocketed and gone up 10x or 1,000%!

Speed bumps ahead. Drive carefully.

Smartest Money Isn’t Buying (Yet)

As https://www.bing.com/search?q=warren+buffett&cvid=92f52ed28ecc437ba17b7df32c0e1bdf&aqs=edge.0.0l9.11732j0j1&pglt=2083&FORM=ANNTA1&PC=U531# takes centre stage this afternoon at 4 pm EST (9 pm BST) to host the Berkshire Hathaway Annual General Meeting, I’m looking forward to hearing his perspective on the coronavirus pandemic and implication for investors. Buffett has been surprisingly quiet over the past few months as the U.S. markets crashed and rebounded almost as swiftly.

It’s now confirmed, Buffett wasn’t getting ‘greedy‘ or going on a stock-buying spree in the last quarter. As the stock markets sold off, Buffett continued to build up his massive cash pile to a record $137 billion, up almost $10 billion from the end of the year. According to company filings, Berkshire only bought $1.8 billion of stocks on a net basis in the period and repurchased just $1.7 billion of its own stock. He moved more money into U.S. T-bills which also indicates he’s not looking at deploying that cash into equities in the immediate future.

Berkshire Hathaway Balance Sheet

Berkshire’s did also report it’s biggest ever first-quarter loss of $49.7 billion primarily resulting from $55.5 billion in unrealized losses from its stock portfolio it had to report. On an operating level, the business was profitable by about $6 billion and as the company stated in its press release: “The amount of investment gains [and] losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.”

So let’s hear what the ‘Oracle of Omaha’ has to say later today. It may not be as entertaining without Buffett’s right-hand man c being present but insightful nevertheless. I’ll update the article post-event with further insights and you can watch the meeting (more of an interview) live at https://finance.yahoo.com/brklivestream/

E7: Investing vs Trading

E7: Investing vs Trading


Investing and trading are not the same. Often people confuse the two and its important to be understand and differentiate the two. Many get misled by trading “education” platforms that often themselves make more money from their courses then their own trading. Trading is a full time job and essentially speculating. Investing is the ownership of assets and businesses that will appreciate in value over time based on the economics of supply and demand.

Investing vs Trading

Investing and trading are not the same. Often people confuse the two and its important to be understand and differentiate the two. Many get misled by trading “education” platforms that often themselves make more money from their courses then their own trading. Trading is a full time job and essentially speculating. Investing is the ownership of assets and businesses that will appreciate in value over time based on the economics of supply and demand.

E11: How I’m (not) Investing in Cryptocurrencies

 

 

Bitcoin going to $1k or 50k? Investing is hard, investing in cryptocurrencies is even harder. Here’s how I’m doing it and not. Not investment or financial advice. Educational purposes only.