Trading the stockmarket (NO Referrals)

Jono8 · 8 Feb 2021 at 15:31

mid_gen said:
Stick to Buffet's advice, if you like the stock, at least wait until it has a red day before you buy it....usually avoids the risk of an immediate reversal!

Na, it would just continue going down in that case

unwashed potato! · 8 Feb 2021 at 16:07

arknor said:
kinda funny ELON promoted doge so much then buys BTC.

it's like he knew people would convert BTC to doge and drop the BTC price a little so he could try to buy at a discount :O

15% isn't much of an increase as say compared to saying he's buying xlm or link or another other random crpyto.

Simon · 8 Feb 2021 at 16:16

It’s a lot when you have 1.5b worth !

mid_gen · 8 Feb 2021 at 16:23

Simon said:
It’s a lot when you have 1.5b worth !

Think you have to put the investment decisions Elon Musk makes into context.

If I had nearly 200 billion dollars to my name, I'd probably punt 1.5 billion on BTC, particularly as I know doing so will immediately move the market upwards.

iamtheoneneo · 8 Feb 2021 at 16:23

Russinating said:
Here's mine, I was about to type them out and realised it's basically all of them:

As you can see it's my UK-focused funds that have been dire, so if I was to cull any it'd be those. I'm sure there's some overlap too but running HL's portfolio analysis it's pretty diverse; discounting Tesla my weightings are 2-8% each in 14 sectors with every underlying share holding under 1% (top 10 are Unilever, Diageo, LSE, Apple, Nintendo, Heineken, Microsoft, Amazon and Disney).

Your in a similar position to me. It's depressing seeing so little gains on UK funds compared to the US. Im giving it another six months before I close on the UK mainly because a) Im looking to see growth once covid starts to cool down in the summer and b) feel the US markets are so ridiculous at the moment that a crash is almost inevitable.

Firestar_3x · 8 Feb 2021 at 16:26

mid_gen said:
Think you have to put the investment decisions Elon Musk makes into context.

If I had nearly 200 billion dollars to my name, I'd probably punt 1.5 billion on BTC, particularly as I know doing so will immediately move the market upwards.

Tesla purchased it not Elon? Tesla is worth a boat load more than 200 billion.

1.5 billion is almost an insignificant amount of money to them.

Tone1979 · 8 Feb 2021 at 16:35

Apex said:
15% isn't much of an increase as say compared to saying he's buying xlm or link or another other random crpyto.

Also, wasn't the purchase in Jan?

arknor · 8 Feb 2021 at 16:39

Tone1979 said:
Also, wasn't the purchase in Jan?

he tweeted the words "doge" in december though

but yes it's tesla buying them not elon personally, seems they will soon start accepting bitcoins for cars

I'd imagine he privately owns some anyway though when he knows tesla plan to accept it as a payment.

Martynt74 · 8 Feb 2021 at 16:44

I don't get why they need to buy $1.5b of it though to accept it as payment. If i was a regular investor in Tesla, i've be wondering why they're buying it.

Simon · 8 Feb 2021 at 16:48

Maybe it’s a hedge as carbon credits won’t be enough to keep Tesla in the black forever

Hyburnate · 8 Feb 2021 at 16:49

Martynt74 said:
I don't get why they need to buy $1.5b of it though to accept it as payment. If i was a regular investor in Tesla, i've be wondering why they're buying it.

Bitcoin shall always rise in value especially with a company such as Tesla behind it. It's a no-brainer really.

Jono8 · 8 Feb 2021 at 16:53

Who bought loads of ocugen at pennies and is now rich then (and possibly a millionaire if they get fda approval)?

mid_gen · 8 Feb 2021 at 16:56

Firestar_3x said:
Tesla purchased it not Elon? Tesla is worth a boat load more than 200 billion.

1.5 billion is almost an insignificant amount of money to them.

Well, 'worth' is a difficult thing when you're talking about stocks...but yeah. Tesla bought them, at Elon's direction.

They have vast amounts of cash on hand, it's usual to invest it. He's just decided to punt it on BTC.

Durzel · 8 Feb 2021 at 17:01

As a Tesla owner myself (sadly not stock) I would not put a great deal of faith in what Elon says vs what actually happens.

I find it hard to see this as anything other than market manipulation? It's not a regulated market, sure, but that doesn't mean it's immune from manipulation - if anything it's more vulnerable to it because of the lack of oversight. Tesla made ~$200m, maybe more at this point, just from making that announcement. I don't expect we'll see an announcement when they liquidate their position.

Daytrader · 8 Feb 2021 at 17:07

Yeh still really strange thou, as they have debt of like 14 billion, and cash equivalent of like 8 billion, so still like 5+ billion in debt, if i was a shareholder, or debtor i would not like it myself.

Edit: i might add that is from a article oct 2020 from what i read online.

According to the Tesla’s most recent financial statement as reported on July 28, 2020, total debt is at $14.10 billion, with $10.42 billion in long-term debt and $3.68 billion in current debt. Adjusting for $8.62 billion in cash-equivalents, the company has a net debt of $5.48 billion.

Jono8 · 8 Feb 2021 at 17:08

Pretty shrewed move. He knows that big companies like tesla buying into it and allowing it for purchases will only make the price go up. I bet other big companies follow their lead now.

englishpremier · 8 Feb 2021 at 17:09

Daytrader said:
Yeh still really strange thou, as they have debt of like 14 billion, and cash equivalent of like 8 billion, so still like 5+ billion in debt, if i was a shareholder, or debtor i would not like it myself.

Debt is usually good though provided it can easily be serviced and managed.

arknor · 8 Feb 2021 at 17:29

Martynt74 said:
I don't get why they need to buy $1.5b of it though to accept it as payment. If i was a regular investor in Tesla, i've be wondering why they're buying it.

if they plan to accept it as payment they are probably required to hold a certain amount or some such I'd imagine to cover volatility with refunds or whatever

Basher · 8 Feb 2021 at 17:57

arknor said:
if they plan to accept it as payment they are probably required to hold a certain amount or some such I'd imagine to cover volatility with refunds or whatever

Who on earth is going to buy anything which such a volatile currency?

neviditelny · 8 Feb 2021 at 17:58

booyaka said:
It's fine to diversify, but a lot of it depends on how much you have invested.

Honestly no point in diversifying £5/10k or something in reality.....two/three funds is enough to spread around. Larger sums yes - but sometimes people diversify too much. I have a client who had around 200k in ISA's - he'd self managed them for years himself - but got to the point he wanted some advice/help with them. After getting the details and reviewing his investments, turned out he had 32 funds and 18 individual shares. Diversifying had been rammed down his throat by press/Sunday Times etc but he'd gone way over the top.

My SIPP has around 11 funds and 1 individual share (Firstgroup)

ISA has 7 funds, similar to SIPP.

I do my 6 monthly review around the end of this month. Don't chop/change much as it's all long term holdings/growth I'm after.

If I buy individual shares, it's for long term holding - I rarely "trade" them (apart from GME situation)

I'm not having big sums of money yet as I've just started to invest long term. I'm mainly focusing on funds as I don't have too much knowledge about shares or enough funds to invest properly in shares. I just want to make sure I don't have everything in the same markets.