Stocks - The Best Buys 2

[Table 5]

Originally Posted by Jason14h

The generation that mostly can afford high end luxury cars didn’t grow up with Tesla as a brand

So Teslas high end market is effectively high earning young IT professionals

We will see in a decade if the next generation of high earners buy a Tesla, Mercedes or VW product

For the short/medium term at least, it's probably not helping that the companies where those high earning young IT professionals are employed are getting eviscerated right now.

[zamler]

Originally Posted by Enoch Root

You are treating this like a sporting event and you are rooting your favourite team. That is not how it works with stock prices.

Their stock price has built in A #### TON of growth. I am saying that growth rate is going to be severely challenged, a lot quicker than some people think.

That doesn't mean they won't keep selling cars. It doesn't mean they won't keep growing. But in order to justify the current stock price, their growth has to continue to be exponential. And that is becoming increasingly unlikely, as other manufacturers bring more and more EVs to market.

Look at VW's numbers - they now have EVs on multiple platforms, and covering the spectrum with respect to price point. And their market share is expanding very rapidly (500,000 EVs last year, when they were all but non-existent, 4 or 5 years ago).

And that is just one company. EVERY company is entering the market. It is simple math - the growth that is priced into Tesla's stock, is just not going to be achievable.

How much VWAGY do you own?

[bluejays]

Recession is all but a foregone conclusion here. Whether in a few months or a year, it's virtually guaranteed. What sector should do well under these circumstances?

[DoubleK]

Originally Posted by fleury

Recession is all but a foregone conclusion here. Whether in a few months or a year, it's virtually guaranteed. What sector should do well under these circumstances?

Tobacco and booze aka Consumer Staples

[dino7c]

Originally Posted by Jason14h

The generation that mostly can afford high end luxury cars didn’t grow up with Tesla as a brand

So Teslas high end market is effectively high earning young IT professionals

We will see in a decade if the next generation of high earners buy a Tesla, Mercedes or VW product

I can only speak for myself but I have done a 180 on my thoughts on Telsa (40 year old IT professional)
about a year ago I would have said 100% my first electric car purchase would be a Tesla
now I would say it 100% it won't be...Musk has totally lost me as a supporter/customer...also sold my stock

[zamler]

Looks like it will be another fake recovery day.

....wow UPST is down 60% don't know what they are about but flush.

[DoubleK]

Originally Posted by zamler

Looks like it will be another fake recovery day.

....wow UPST is down 60% don't know what they are about but flush.

AI based lending.

[bizaro86]

Originally Posted by Enoch Root

especially the largest and wealthiest one.

Which generation is that? Millennials are already the largest generation.

As a group we're not yet the wealthiest, although average net worth in inflation adjusted dollars is higher than the boomers at the same age.

https://www.pewresearch.org/fact-tan...st-generation/
https://www.bloomberg.com/opinion/ar...ion-believe-it

edited to add: obviously you're correct that TSLA stock implies exponential growth approximately forever, which is definitely unrealistic (even if I'm not on team TSLAQ I don't own it)

[BlackArcher101]

Originally Posted by DoubleK

AI based lending.

I wonder if they saw this coming....

[Johnny199r]

Hopefully no one is panicking here.

I remember a couple of years ago during some market instability a poster on here said "he couldn't take it anymore" and sold, which was at a low point.

I'm 100% invested in broad based equity ETFs. I don't care how low the market goes, my timeframe is 15-20 years.

[bizaro86]

Originally Posted by Johnny199r

Hopefully no one is panicking here.

I remember a couple of years ago during some market instability a poster on here said "he couldn't take it anymore" and sold, which was at a low point.

I'm 100% invested in broad based equity ETFs. I don't care how low the market goes, my timeframe is 15-20 years.

Comments with capitulation always mark the final bottom. I haven't seen too much of that yet.

[BlackArcher101]

Originally Posted by Johnny199r

Hopefully no one is panicking here.

I remember a couple of years ago during some market instability a poster on here said "he couldn't take it anymore" and sold, which was at a low point.

I'm 100% invested in broad based equity ETFs. I don't care how low the market goes, my timeframe is 15-20 years.

I'm 90% cash at the moment as I thought this couldn't last. For once I made a right decision. So I'm getting ready to get back into it, but def going to wait further.

[dino7c]

Originally Posted by BlackArcher101

I'm 90% cash at the moment as I thought this couldn't last. For once I made a right decision. So I'm getting ready to get back into it, but def going to wait further.

Hope you don't mean actual cash...you can still get 2-3% in a liquid savings account or short term GIC

I do agree though, I have a large amount of money not in the market

[burn_this_city]

I've been accumulating here around $400-415 SPY, who knows if it will drop to $350, but I'm not going to lose sleep over it.

[BlackArcher101]

Originally Posted by dino7c

Hope you don't mean actual cash...you can still get 2-3% in a liquid savings account or short term GIC

I do agree though, I have a large amount of money not in the market

Yes, not entirely cash, but out of the market funds and accessible.

[Johnny199r]

Originally Posted by BlackArcher101

I'm 90% cash at the moment as I thought this couldn't last. For once I made a right decision. So I'm getting ready to get back into it, but def going to wait further.

When did you take a 90% cash position? If it was recent, good job.

If it was a few years ago and you've been waiting ever since...

[BlackArcher101]

Originally Posted by Johnny199r

When did you take a 90% cash position? If it was recent, good job.

If it was a few years ago and you've been waiting ever since...

Sadly I was months late taking advantage of the drop 2 years ago, so I missed out on some of that, but still gained a bit later on. Unemployment sort of changed me to hold onto what I had, things looked rocky.

I withdrew back in November, so that was a win looking at things now. Only playing a few energy stocks now and then since.

[Enoch Root]

Originally Posted by zamler

How much VWAGY do you own?

Why?

Once again, you're treating it like a sporting event, rooting for your team.

I don't need to buy VW stock just to prove that it is better than TSLA

[DoubleK]

Originally Posted by BlackArcher101

I'm 90% cash at the moment as I thought this couldn't last. For once I made a right decision. So I'm getting ready to get back into it, but def going to wait further.

Nice timing. Did you sell all at once and are you getting back in all at once?

[DylanScores]

New to investing particularly stocks. How does dividend works? Do they send you a cheque? Sorry for the newbie question. Thank you.