UnknownSoldier
Unknown Member
I look at the Schwab Equity Rating as more like "What are the chances you will lose 100% of what you invest?" You're unlikely to lose your shirt on Proctor & Gamble or Nestle, for instance. So those rate an A. Tesla nearly went bankrupt at least 3 times that we know of. So in that regard, sure it deserves the F it long had, although today it has a D. Now if your personal equity rating is based on "What are the chances you will retire to your yacht in the Caribbean?" then yeah I wouldn't really use Schwab Equity Rating for that kind of rating.I like Schwab's low ratings for Tesla. I've been a Schwab brokerage client since 1997 and the low ratings bring up a lot of fond memories of stocks I made huge profits on. All my most profitable stocks had really low Schwab Equity Ratings.
Here is a screenshot of how all the rated stocks performed in 2020 grouped by their overall Schwab Equity Rating:
View attachment 718654
Of course the results vary depending upon the time period charted but I think you can see why I get a good feeling when I see a stock I hold (or one I want to buy) is poorly rated. I mostly ignore this rating but I would appreciate a heads up if anyone notices Tesla suddenly becomes highly rated. It might be time to sell.