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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

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One of the most difficult transaction to make in the stock market is when to sell, especially with your winners. You could always sell half the position and hope for a pullback after earnings or in Q1. Rather than liquidating shares you could also sell out of the money covered calls as hedge against a pullback. The premiums on the 2/21 calls are pretty solid. Right now, TSLA looks like it wants to continue to run through the end of the year. First chance of a pullback will be after Q4 deliver numbers, sell on the news event possibly.


My recommend is to hold till end of the year and then sell some 2/21 calls or 1/2 your position if you have the itch to lock in some profits.


I love/hate this. Every time TSLA hits an all time high I tell myself "I'm in this for the long haul. And, plus, this is when they'll break out and the roller coaster will calm and TSLA will start to behave more like a growth stock than a bucking bronco and I'll be left in the dust after having sold at the high" and so I patiently hold, only to see a huge dip afterwards. Then, of course, I kick myself for not selling at the high and then buying at the dip. So, once again, I'm faced with the dilemma: Do I sell or do I hold? Yes, a good problem to have, but anguish nonetheless.
 
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But wondering how many of us will be able to secure the real $420 sp and not some 420.01, 420.05?
I think the safest way to do it is wait until it passes 420 and then put in a limit order for 420.
But what if it never returns? A scary prospect.

However, if it does we can build a buy wall that will hold for the rest of the day;).

I think Elon would love to see that wall hold.
 
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I feel that I should say something at this great moment. I added more stake during the down trend time, $290 $260 $252 and ran out of dry powder. Then it went to you know, $176 or something? That was a painful process.
Now that all passed, but TESLA car still has a lot to improve on quality and reliability. My wife still doesn’t agree to buy one. Let’s keep pushing Elon and his fellow employee, though they always push themselves hard already.
Congratulations to everyone who stand strong up to today. Cheers!
 
Latest example of why Tesla is more than a car manufacturer. An acceleration boost SOFTWARE basically costing $0 reproduce is offered for $2000. Show me another automaker who can charge $2000 for some computer codes. For GM or Ford to generate $2000 on their bottom line, they have to sell $20,000 worth of car. Part of the reason why Tesla is valued so high relative to revenue. Tech companies typically get valued this way because their cost of goods sold is basically nil. A $1 on the bottom line of Tesla takes a lot less revenue to create than the same $1 on the bottom line of an automaker.
https://ww.electrek.co/2019/12/18/tesla-acceleration-boost-upgrade-leaks-model-3/
 
CNBC just said nice things about Tesla :eek:
I love/hate this. Every time TSLA hits an all time high I tell myself "I'm in this for the long haul. And, plus, this is when they'll break out and the roller coaster will calm and TSLA will start to behave more like a growth stock than a bucking bronco and I'll be left in the dust after having sold at the high" and so I patiently hold, only to see a huge dip afterwards. Then, of course, I kick myself for not selling at the high and then buying at the dip. So, once again, I'm faced with the dilemma: Do I sell or do I hold? Yes, a good problem to have, but anguish nonetheless.

What you say sounds reasonable until you consider that no one can identify the top until after it's already happened. And you might think you have identified the top after a 5% decline only to see it shoot up 20% in one day (without you onboard). And a lot more after that.

Sure, in a mythical world where you can tell where the top is, sell.

The other problem I see with your perspective is that it doesn't look at the bigger picture. Sure, in the depths of the early June 2019 doldrums you might have only felt despair. But, if you look at the bigger picture (like a 10-year chart), you will see it was just "doing its thing".

I don't know where the next trading range will establish but I can guess that it's a LOT higher than the one it's been in about the last 3 years. When you look at annual charts you miss this bigger picture. I'm guessing getting to $800 will be child's play. Investing should not make you feel anguish. Just follow these rules:

Only play with money you can afford to lose (this might require a mindset adjustment as to how you view money)
Never use margin
Only buy stocks you have researched and feel they have superior odds of good returns
Never sell a stock simply because it has appreciated a lot. These are generally the ones you want to maintain (or even add) to
Always sell a stock when a companies prospects have changed for the worse such that the original reason you purchased them is no longer intact.
Never hesitate to sell a stock simply because you are down on it
Never sell simply because it went down
Never pay attention to analysts' buy/sell ratings (unless you are going to do the opposite, LOL!)
Only invest in companies you feel comfortable with.

I think most individuals would do better to not even worrying about trying to value a company, it's more important to hold good companies over a long period of time than to worry whether they are over-valued or under-valued. This is similar to thinking you can sell at the top and "lock your gains in". But, guess, what? Now you have a bunch of cash that is probably looking for re-investment. What to buy becomes the new problem. You might ask yourself, "Why did I sell that great company?" You might tell yourself, "boy, it's going to be hard for me to find one as good to replace it with." The real skill in investing is picking the companies that are going to perform well on a business level. The share price will eventually align if you are a long-term holder. And the compound gains are what will make you wealthy. People who flit in and out of stocks almost never get wealthy.


Of course, this is not comprehensive, but you get the idea. Everything you need to know about investing, you already knew innately by the time you were in kindergarten.
 
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