I have a good friend that does wealth management for a big bank in my city. You have to have $250,000 to invest with him and he is all about diversification picking blue chip stocks. I think he gets his clients pretty steady solid returns. He knows I’m very bullish on Tesla and he is fine with that because he wouldn’t want to talk me out of a winner. The only thing I take issue with is he thinks if I have found a winner then I’m lucky. He says he has had a lot of clients want to buy a particular stock because of their future potential. Then those companies stock end up going down or don’t do much at all. He says it’s not about being smart it’s about being lucky. This is where I disagree with him. I think you can estimate a companies future profits on its future product lineup. That’s if you are almost certain they will sell those products at your estimated volume. I’ve honestly been looking for a sure beat like Tesla since the iPhone came out. Didn’t see Amazon cause the stupid media tricked me. If I had money when the iPhone came out I would of invested everything. I personally think it’s smart to wait patiently until you are 90% sure you have a winner and investing in that company. I question how smart his clients are and I question how well they analyzed the companies they liked. From talking to people about Tesla I realize that the average person seems rather dumb (even though they are engineers, lawyers, and analysts) and the media definitely influences what they think. Just wondering what you all think about this? Are we lucky to have picked TSLA or are we smart? Could be both. Smart enough to analyze the company correctly and lucky enough to stumble upon it.
'Smart' plays a role. Unfortunately, you can't predictably aim it at anything with the uncertainty of the market.
'Passion' is the important thing. However, it does have to be tempered with smart.
The reason I like this forum is that pretty much everyone here is passionate about Tesla. That makes them think about it all the time, read every article, and distinguish the grain from the chaff. Because of this way of educating themselves, they have good perception and insights. I like what they have to say.
Your broker friend is probably jaded by seeing too many instances of people 'trying' to make money, but without the needed depth and passion within any area of investment. That is a recipe for lukewarm success, if any at all.
For example, many of us here could have predicted Musk would do something like find 1,250 ventilators, and have them ready within days for hospitals. At least, most of us likely just nodded on learning it, without much surprise. What other investor would know the key figure in their investment that well? That's why I'm invested in Tesla, and pretty much nothing else.
