I have been following Gary Balcks tweets recentlyI really don't understand Gary's thinking sometimes and he has been wrong many times.
Take this tweet by him: Gary Black on Twitter: "No one knows what the $TSLA supply / demand dynamics will be next week. We know indexers need to buy 120M shares. We have no idea how much of 760M float will be presented by sellers to meet that demand. We know TSLA up 59% since 11/16, which is a lot more than 16% float needed." / Twitter
Why is he comparing the share gain percentage to the 16% float needed to be bought by index funds. Those two numbers have no relation. The more important factor would be the volume since S&P announced inclusion and how much of the buying volume, in terms of how many shares have been bought over the past 3 weeks with the intent to sell on inclusion date, verses the shares needed to be bough by index funds next week. That's the equation that will determine where Tesla ends up on next Friday.
I am glad he is not my financial advisor
I am surprised he at one time even managed a fund
A 16% float that needs to be bought by indexers , if not available can lead to a much much higher gain in share price
I don’t understand his reasoning and I now am a strong believer that his reasoning is faulty
He still tends to think and operate by his archaic investment models
It’s frustrating that many people Follow his musings and invest based on his illogical faulty assumptions.