S&P index tracker vs FTSE dividend fund.

Linton

CreditCardChris wrote: »

Couldn't agree more, and to be honest I think technology (green energies, space exploration, fuel systems, transport systems) etc will still be where the real growth is for the next 100 years as technology is by definition and constantly evolving industry, unlike oil or banking which kinda just serves the same purpose until the end of time.

I mean look at Elon Musk for example, creates an electric car and a space exploration company which become $70billion companies in a decade. Where the !!!! is our space industry?


The UK population simply has absolutely no interest in creating tech companies essentially is what it boils down to.

The UK is extremely effective at creating Tech companies. Unfortunately the best ones mostly get taken over before they reach the FTSE100 or not long after as in the case of ARM.



Elon Musk has so far proven to be very good at spending other people's money in creating impressive tech. He has yet to prove he has a viable long term business. Tesla's current market value at $59Bn compares with Ford's at $35Bn. Tesla's turn over was $21Bn last year, Ford's was $160Bn. In the past 3 months Tesla made its first ever quarterly profit of $143M recently after losing £1Bn in the first half of the year. Last year Ford did poorly making a profit of $3.7Bn.


Is Tesla really currently worth 1.7 X Ford? Or is it possible that it is a little overvalued?

CreditCardChris

Linton wrote: »

The UK is extremely effective at creating Tech companies. Unfortunately the best ones mostly get taken over before they reach the FTSE100 or not long after as in the case of ARM.



Elon Musk has so far proven to be very good at spending other people's money in creating impressive tech. He has yet to prove he has a viable long term business. Tesla's current market value at $59Bn compares with Ford's at $35Bn. Tesla's turn over was $21Bn last year, Ford's was $160Bn. In the past 3 months Tesla made its first ever quarterly profit of $143M recently after losing £1Bn in the first half of the year. Last year Ford did poorly making a profit of $3.7Bn.


Is Tesla really currently worth 1.7 X Ford? Or is it possible that it is a little overvalued?

I know a classic example is ARM, a fantastic British company which quickly got gobbled up by a foreign company. The UK government should have prohibited the sale to be honest.

As far as Tesla's stock price goes, seeing as electric vehicles are absolutely going to be the future of motor vehicles and maybe even aeroplanes, (oil is a finite resource) it seems like a no brainer.

Tesla and Spacex could very well both be trillion dollar companies in the next 20 years... Meanwhile the UK hasn't created a £5billion company for 15 years let alone ever creating a trillion dollar company.

Linton

CreditCardChris wrote: »

.....

As far as Tesla's stock price goes, seeing as electric vehicles are absolutely going to be the future of motor vehicles and maybe even aeroplanes, (oil is a finite resource) it seems like a no brainer.
......

Electric vehicles may well be the future, but how certain is it that Tesla will be making them for the mass market? It may well end up as the luxury brand name of some major global manufacturer. How about Toyota or some currently unknown Chinese company? History shows that its the business brains focussing on sales and profits who win out, not the tech innovators.

ColdIron

So basically the FTSE 100 is full of dinosaur companies which are happy to coast along until they eventually die

unlike oil or banking which kinda just serves the same purpose until the end of time.

I'm struggling too

dividendhero

Linton wrote: »

The UK is extremely effective at creating Tech companies.

Last UK Tech company to head into the FTSE100 is a portal to fast food takeways (Just Eat). Meanwhile it looks like Inmarsat is heading into foreign ownership..says it all :mad:

Thrugelmir

CreditCardChris wrote: »

Meanwhile the UK hasn't created a £5billion company for 15 years let alone ever creating a trillion dollar company.

Who cares? Investors prefer actual returns to vanity. Uber and wework are examples of overpriced overhyped upstarts.

Prism

Why so binary? Hold some of both, along with the rest of the world. Which stock m.arket a company trades on at the scale of these companies is not massively important. Nobody knows which will do better over the coming years.

Thrugelmir

Prism wrote: »

Why so binary? Hold some of both, along with the rest of the world. Which stock m.arket a company trades on at the scale of these companies is not massively important. Nobody knows which will do better over the coming years.

Tesla's future value is more likely to be in it's GRID battery business. Than vehicle manufacturing.

bostonerimus

This thread just reinforces the principal that you should diversify your holdings and not be fettered too much by home bias. The UK needs to understand that it's on a generally downwards trajectory relative to many other economies because all the advantages it had in the 19th and 20th centuries have been lost. The US is also on a downwards relative trajectory, but it's size and natural resources will make the decline more gradual.

bostonerimus

CreditCardChris wrote: »

The S&P 500 has had tremendous growth over the last 10 years but doesn't pay dividends, whereas the FTSE 100 has had slow growth over the last 10 years but most companies pay dividends.

What makes you think S&P500 companies or indexes don't pay dividends? The Vanguard 500 fund pays 2%.