i just bought 8,645 of TESLA STOCK

Link to join StockHub free investing discord server: Want to join our free STOCKHUB discord chat? Here is the link

I just bought over $18,000 worth of tesla stock here today alright and there are gonna be a ton of questions with this one i’m gonna answer all those after we’ll get into all those questions that you guys have first off let’s just look here so basically i created a separate account that’s away from all my other accounts that is just going to be called the tesla

Account okay this account just has tesla shares in it so i basically bought for over $18,000 worth 58 shares in total and the cost based on that one’s 300 $21.98 here on the tesla so that’s what i’m looking at that’s what we’re at as far as cost basis and whatnot over 18,000 worth so what i want to do here is i want to fully go through this because i could imagine

There’s gonna be a lot of questions around this one with me with tesla and whatnot so let’s just get into this guy’s why tesla no profits why so little money in it how long how long will i be willing to hold for why not buy him chunks usually i buy it in two to five thousand dollar chunks like why just eighteen thousand plus dollars all in one day will you add more

Shares and last one is what’s my risk versus reward like what’s my potential upside in the stock was my potential downside so we’ll get into all that first off why tesla’s is probably simplest i believe they’re disrupting two industries i’ve always believed they’re completely disrupting the auto industry the internal combustion engine obviously moving to electric

Vehicles and then not just on top of that but then you talk about autonomous driving there there’s a massive change going on in the auto sector that we’re going to play out over the next five to ten years in there in the forefront of that alright but also i believe this is a company completely disrupting the energy industry it’s just gonna take a little longer

For that one to play up that’s more of like a 7 a 12 year play rather than the autos is like over the next five to 10 years we’ll see a mass adoption of tesla v’s you know probably millions of units per year they’re gonna start producing all right so it’s pretty simple why i would buy tesla like this you know obviously they’re completely disrupting some industries

All right no profits you guys know i don’t buy companies that don’t make profits okay so here’s my view on things everyone can own a spec stock in their portfolio okay my specs talk is going to be tesla i do not own a spec stock as of right now i want to own a speck stock is speck stocks can be fun in the sense of it gives you some type of way you can make a lot

Of money it kind of keeps things interesting okay so a lot of times we can be in very boring companies all right a lot of value companies you guys know i’m more of a value investor than growth investor so a lot of the companies i’m in are pretty boring companies at the end of the day they’re there they’re you know expanding their businesses maybe 5 10 2% or so

A year but they’re just kind of boring businesses at the end of the day the spec stock gives you the upside of wow this could be a massive company someday but it also gives you more risk all right so the reason i bought it in in you know in the spec stock if anything goes if you’re gonna buy a spec stock anything goes with a spec stock okay doesn’t really matter

See also  Leon Cooperman Stock Market Will FALL 25% If Elizabeth Warren Is Elected

About balance sheet doesn’t really matter about you know the p/e ratio or no p/e ratio a spec stock is a spec stock the issue i have is when people end up making spec stocks they’re their biggest positions that’s crazy in my opinion if you’re going out there and you’re buying some speculative company that has no profits coming in and you’re making that your biggest

Position or even close to one of your biggest positions in my opinion that is crazy okay that’s crazy of my personal opinion all right why did i put so little money in it’s only $18,000 the reason i put a small amount of money is because this is a spec stock okay so at being a spec starting by the way i would say it’s better than most specs up there and that in the

Sense of this one actually has tons of demand it has you know tens of billions of dollars of revenue and whatnot so it’s much less speculative than a lot of people’s spec stocks right but in my opinion i don’t want to risk the farm with this company okay do i believe they’re gonna do huge things in the future yes do i believe they’re gonna be massively profitable

In the future yes do i believe they’re gonna be one of the ten most important companies in the entire world ten years from now yes but at the same time as of right now this is a company that has historically taken massive losses that would put it into a speculative category so which means i don’t want to risk a lot of money okay which is why i only put a little

Over eighteen thousand dollars in the stock i don’t want to risk the farm in this one even though it does have a huge upside at the same time what if this company goes bankrupt or something like that like what if they can’t get to a place where the profitable all those are possibilities that you got to take into account when you’re you when you’re investing so

Which is why i only stuck that amount of money okay also how long am i planning to hold this stock i would say at least five to ten years i do not see myself regardless how much it goes up down anything this is a stock i plan on holding for a long long period of time all right when you buy a spec stock like this that has massive upside potential you’ve got to be

Willing to go through the downs and ups so if this stock was to go $200 if this stock was go to you know $1,000 it doesn’t matter i’m not selling this stock – regardless okay this is a long long term hold for me most stocks when i get into them i’m kind of thinking like two to five years out this one since the spec play i’m thinking like five plus ten years out you

Know like like maybe i’ll take this one of the grave with me like who knows this is just a super long term hold okay it’s no different than if you were buy an apple stock in the late 90s okay apple was kind of on the comeback and it was looking like maybe they could do some big things but apple has horrible financials at that time and it was still a speculative

Investment but some people just bought in and they’re like we believe in the brand we believe in the ceo of that company we believe they’re gonna expand over time we’re gonna take this to our graves in you know i’m not saying i’m gonna necessarily do that with this stock but i’m just saying i’m gonna hold this for a long long period of time probably longer than any

See also  The Stock Market is Going for Blood | Big T Falling Hard

Stock i hold currently in my portfolio so that’s saying something number five why not buy in chunk so usually i buy in two to five thousand dollar chunks when i usually add shares of a stock i don’t invest you know five figures plus all on a stock in one day like we did here okay the reason i did is just because this is a freak situation it’s a spec stock i just

Want to buy in my position in this one i don’t care about doing anything else with this stock i just want to buy in my position and hold it for the next five to ten years it’s almost like one of those stocks they call you put in the filing cabinet type stock okay will you buy it you don’t care about the stock price where the south price goes in the short-term you

Put in the filing cabinet you try not to look at it and you close your eyes and in five to ten years and we’ll see where we’re at with that stock that’s how i’m treating this one so which is why i didn’t buy in chunks they just bought a you know eighteen thousand all at once and it is what it is all right number six will you add more shares no i have no plans to

Add any more shares i don’t care if it goes down to two hundred dollars i don’t care if it goes up to five hundred dollars and they got some huge new thing going on i plan on adding no more new shares so usually when i into a company i buy a small chunk okay is how i usually do it i buy a small chunk in that company i kind of hope it goes down because i would like

To buy more for even cheaper prices if it stays around the same or goes down a little bit i probably buy more and more and more until i get a big position built ok with this stock i do not plan on doing that so regardless if it goes up down i don’t care like this is my position i built my position and test so i bought it today and it’s just holding for the next

Five to ten years there’s no plans to add any more shares regardless how much it goes down or up and the last one we got to talk about here is what is my risk versus reward in the stock as with all investments you’ve ever do in life you always you have think about what is my risk going into this one what is my potential we you know reward in this one over time so

My potential risk is obviously i could lose 100% of my money in this i could lose all 18,000 plus dollars in the stock okay they can go bankrupt they never make a profit no one a loan of money it’s pretty unrealistic but it’s always a possibility okay with any stock pretty much especially with the company that’s losing money right now okay so i could lose all my

Money eighteen thousand dollars gone or what can end up happening on the flip side is that my bullish thesis can play out and where i could see this company kind of going is kind of like a 10x a 10 bagger as we call them the stock market which basically means you make ten times on your money okay i think this company has that type of potential when i kind of look

See also  Financial Advice for New College Grads

Out over the next you know like decade let’s say when i look out over the next decade i think they’re going to have massive market share not only in north america but around most of the world for electric vehicles i think they’re gonna completely change the electric system throughout the world especially over time you know they’re just doing so many big things and

Then this is a type of company if they do those two huge things successfully they’re gonna do some more things successfully over time this isn’t a company that’s just like oh we’re only going to do electric vehicles and we’re only going to do energy they’re gonna do other big things they’re gonna just run more industries in the future this is what those type of

Companies do those type of companies that are this disruptive they find the next thing the next thing no different than amazon you know amazon you should be thought of all only as a retail business and now they’re thought of you know as amazon web services and that’s kind of where where a lot of the hype actually is around the amazon stock now is that the potential

For amazon web services to be a bigger business than actually the retail business okay so that’s kind of where i think about this stock is a visionary leader there at elon musk does he say some crazy crap sometimes yes absolutely okay but just because you say crazy crap doesn’t mean you can’t be successful it doesn’t mean you can’t accomplish big things the the

Most controversial person probably in the world is the president united states right now who’s the most important person in the entire world so think about that for a second it does either i must say some crazy stuff yes but if you can become president of the united states and say some crazy stuff you can probably be ceo of a company and say some crazy stuff from

Something from time to time but the guy the guy is a visionary you know genius as far as you look at what he’s doing with spacex look what he’s doing with tesla like the proof is in the pudding with the guy he’s i think he’ll definitely be remembered as a legend in the game we’ll just have to see how it all plays out i think even if he you know i think even as

Of now people would look up to him as a legend with what he’s accomplished already in his life if you look at his track record and what he’s done with the companies you know and what he’s been able to accomplish so that’s my bush thesis on tesla we’ll see how it plays out over the next five years five to ten years i’m not selling the stock like i said it goes down

Not buying more not selling off if it goes up a bunch i’m not selling enough either it’s just what it is guys so let me know if there any questions i that went unanswered i think i hopefully got most of the questions answered here i would love to hear from you guys as always make sure you follow me on instagram if you are not already posting more and more content

And instagram take it up to a whole new levels thank you for watching and have a great day

Transcribed from video
i just bought $18,645 of TESLA STOCK By Financial Education

Scroll to top