Hi.
Any tips would be greatly appreciated.
I am new to investing in general, so links, words of wisdom, or criticism will all be taken accordingly.
Thank you in advance either way!
Best wishes.
Hi Kyle
Since you asked, I'll share some of my main learnings related to investments. Yours or someone else's might be different.
My investment history is 7yrs on ASX and 2.5 yrs on Nasdaq.
Activities that I find helpful and that increased my chances of making good investment decisions:
A keen interest in investing - lots of reading on the subject. Reading about other investors mistakes helps to shorten the personal learning curve.
A keen interest in how to evaluate a business - lots of reading on the subject. Some metrics may matter more than others. A business that has a product or a service that fills their customers needs well is likely to have healthy sales and revenues. What is the competition, barriers to entry?
A keen interest in politics and continual monitoring of world events. When there is no political stability, few businesses can thrive.
A keen interest in monetary policy and other economic developments. These are like road signs signalling where the businesses are heading. Lack of understanding of these increases the investment risks.
Some people find the above subjects boring and their preferences are really not to watch the news and follow businesses, then it is likely harder for them to develop their own personal capability to evaluate a business value or potential.
If you need others to tell you what to do or to evaluate investment opportunities for you, then in my view your investment risk is considerably higher. Opinions and views of others do matter, but these views need to be evaluated on their merit rather than blindly acted on. You might be lucky with acting on tips, but good luck with being lucky.
The biggest risk with seeking and acting on tips from others is that these tips are static - they may be given in good faith at a particular point in time. Businesses operate in dynamic environments and what holds true today might not be true tomorrow, circumstances change. Hence, investment evaluation has to follow new developments from day to day. Such never ending evaluation can only be performed by each investor on their own.
Once you have some considerable money invested in a few businesses, most of the above interests are likely to develop by default. High stakes = high driver to learn
There is so much more that could be said about investing. The main benefit I get from investing is learning about complex dynamic systems, the thrill of getting a glimpse of insight into such complexity. Making or losing money is a side effect and an icing on the cake when it happens.
Regarding investing in TSLA, my view is that TSLA has more upside ahead long term. Short term, I do not know. Model X is likely to be the positive catalyst.
