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Upcoming Stock split- buy now or wait

CYBER_Y

Member
Aug 11, 2020
100
52
USA
I want to get more shares but I’m looking for opinions as to what the best strategy might be. Is there an advantage to waiting until after the split and a possible correction or is it generally better to buy prior to a split
 

ggr

Expert in Dunning-Kruger Effect!
Mar 24, 2011
6,976
27,511
San Diego, CA
The right time to buy was before the split was announced, or as quickly as possible. The day it takes effect (Aug 31) might or might not make a difference. My uneducated guess is that there will be some buying pressure from smaller investors, so if I wasn't already well stocked, I would buy now, or on the 28th.
 

CHGolferJim

Supporting Member
Jan 28, 2014
1,087
418
Chapel Hill, NC
The short-term thesis is based on stock split (probably all effect already factored in), S&P500 inclusion, Battery Day, and 3Q results — supported, of course, by the long-term thesis of massive growth in current and future business units a la Google.
 
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LN1_Casey

Draco dormiens nunquam titillandus
Mar 6, 2019
2,012
9,992
Oahu, Hawaii
The right time to buy TSLA is now, you never know what the future will bring. What if the stock splits to $380 a share, then rises to $420 in the next few traiding days? What if it instead drops to $333?

TSLA is great a long term investment, and if that's the case for you, the sooner you buy the better. A lot of people do poorly trying to time it. You might win. Might.
 
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CYBER_Y

Member
Aug 11, 2020
100
52
USA
Thanks for the perspectives. I don't want to try to time the market. Just wanted to know if one side of the split was better than the other. I read that historically, Apple has split, risen, then corrected a bit, so I figure this is what may happen with Tesla, but then again you just never know what Elon will announce or when he will announce it.
 

CYBER_Y

Member
Aug 11, 2020
100
52
USA
As Master Oogway said:
Yesterday is history
Tomorrow is a mystery
But today is a gift... that is why it is called the present.

Or as Spock said (2009) Do what feels right.
If the stock is going to go up you should buy now. If the stock is going to go down you should sell now. ;) Anybody who thinks they know the answer to that will be right 50% of the time. :(
That's pretty much the exact opposite of what you are supposed to do. I do realize you are being felicitous, however, the old adage be greedy when others are fearful and fearful when others are greedy comes to mind. This FOMO into a split is clearly greed, but in this case the potential for what is going to happen on the other side and the fact that this is Tesla kind of go against the grain for me. I am pretty sure I made the right decision. Thanks for anyone who made good points for my consideration. Yes, the time to buy was long ago. and I did. But I also want to buy now.
 

daniel

Active Member
May 7, 2009
4,778
3,596
Kihei, HI
That's pretty much the exact opposite of what you are supposed to do.

If you want to make money you buy just before the stock goes up and sell just before it goes down. Not sure how that's the opposite of what you're supposed to do.

Of course, in most things I guess wrong, which is why my money is in mutual funds. My shares of TSLA are because my Roadster was such a fabulous car that I wanted to feel a part of the company. I never thought they'd reach fifty times what I paid!

If the stock split has any effect on the share price it will have nothing to do with the fundamentals or the prospects of the company or the management skill of its executives. It will just be a psychological artifact of investors. I care more that the company succeed and keep building great electric cars, than what the stock price is. Yes, I made a tidy packet selling some shares (I won't turn down free money) but what I care about is the success of the company that's pushing electric transportation and solar power.
 

CYBER_Y

Member
Aug 11, 2020
100
52
USA
If you want to make money you buy just before the stock goes up and sell just before it goes down. Not sure how that's the opposite of what you're supposed to do.

Of course, in most things I guess wrong, which is why my money is in mutual funds. My shares of TSLA are because my Roadster was such a fabulous car that I wanted to feel a part of the company. I never thought they'd reach fifty times what I paid!

If the stock split has any effect on the share price it will have nothing to do with the fundamentals or the prospects of the company or the management skill of its executives. It will just be a psychological artifact of investors. I care more that the company succeed and keep building great electric cars, than what the stock price is. Yes, I made a tidy packet selling some shares (I won't turn down free money) but what I care about is the success of the company that's pushing electric transportation and solar power.
 

CYBER_Y

Member
Aug 11, 2020
100
52
USA
With respect, your statement did not contribute at all to my op. I’m glad you were successful and were able to buy a roadster though. I am a hodler and come from the crypto space where Things move much faster. I started investing in Tesla at 200. Of course we want to buy low and sell high, I may have misread your statement as buy when the stock is going up, which I see now isn’t what you meant, so my bad.
 

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