@wuqijun is too busy with his kid and spouse. Allow me to summarize the principles,
a. Buy large quantity of few founder-led companies e.g. AAPL, TSLA, FB, GOOG i.e. no need to keep looking for next big things or diversify over a large number of counter.
b. Buy n hold (hopefully forever). Forget about trading and options.
c. Whenever Mr Market is excessively bearish about your counters and sell at ridiculously low price, add using margin up to 30% of portfolio value. Margin interest is expenses, no issue.
Well at least your odds in the stock market are better than the lottery.
But sure, it’s all about timing. Generational wealth was built by those who invested in the Japanese stock market of the 80’s. I remember a Mary Poppins sketch done by the comedy team “Capital Steps” - “Supercalafragalistic - nothing legislation.” One line was “the Japanese and Donald Trump are buying half the nation.” The bold laughed at haters crying “bubble” at Nikkei 20,000 and doubled down as it went to 40,000.
IIRC, he bought 500 TSLA shares at $41, then $275 (1000) and $180 (unknown bulk) , he also bought 600 shares of FB when it was $37, same with AAPL (both options and purchase early not sold)…etc
Cramer said this is the nightmare we thought could have happened with the S&P 500. “They got added to the S&P 500, the index funds get more and more money and they have to go and buy Tesla, ETFs have to buy more Tesla, there is a just a giant short squeeze involving Tesla. The broken nature of the S&P funds is almost forcing the stock higher. Expect another round of price target boosts today.”
Not only have to buy TSLA but because it is such a big percentage of S&P index, have to buy a lot. As I said many times, should I trust the committee that decide what counters to add or drop from the index? The timing of the addition of TSLA to S&P index doesn’t sound right… single handedly boost the stock price by more than 100%.
Morning Bell With Jim Cramer: Tesla Will Go Higher (14 hours before) => Poor Jim, always fun with him, he does not know, it is going to fall !
No Money to make big TSLA, I just shorted only one yesterday, bought back. Instead I bought 11 puts, sold it for profit. Just bought $4.5 priced puts, sold at $5.5. I may buy similar ones, that I do not know.
I am not so much interested shorting or buying puts, except to check my algorithmic results. Trying to get a nice call when it is bottom.
My guess is TSLA can reach $700 = $396 (bottom of wave) + length of wave (880-396) * 0.618 (factor).
“Now, though it has a challenger, NIO (NIO), the Chinese company that unveiled a new electric vehicle luxury sedan this very weekend that people are going gaga about. Its got tons of features, including an Nvidia (NVDA) based self-driving solution. Lots of bells and whistles that could rival Tesla in the electric vehicle market,” he continued.
One of them, yes. I don’t believe in RE, my wife insists, old school thinking. Stocks are way better, nothing to do. RE has too much attendant activities and net rental income is taxed at your marginal rate. Dividends from AAPL is higher than rental income, at a lower tax rate, and can be leveraged in brokerage account to trade stocks.
