Is Tesla a better investment now it has $1.5B (+20%) in Bitcoin?

doe808

MDMD said:

Prism said:

Yes Baillie Gifford roughly halved their holdings in Tesla a couple of months ago.

Hasn’t stopped the SMT share price falling off a cliff!

for us long term holders, they built their own mountain, so a small decent doesnt matter too much in the big picture. Anyway, I've had to do the same with SMT over the past year as they have had to do with Tesla: sell off, as by their own success they were becomeing too large a % of the portfolio. What a nice place to be :cool:

Thrugelmir

doe808 said:

MDMD said:

Prism said:

Yes Baillie Gifford roughly halved their holdings in Tesla a couple of months ago.

Hasn’t stopped the SMT share price falling off a cliff!

for us long term holders, they built their own mountain, so a small decent doesnt matter too much in the big picture. 

Only 27% fall so far off peak share price so far. It's only money so who cares. 

doe808

Thrugelmir said:

doe808 said:

MDMD said:

Prism said:

Yes Baillie Gifford roughly halved their holdings in Tesla a couple of months ago.

Hasn’t stopped the SMT share price falling off a cliff!

for us long term holders, they built their own mountain, so a small decent doesnt matter too much in the big picture. 

Only 27% fall so far off peak share price so far. It's only money so who cares. 

And the odds are it will fall further. but at 5% of my portfolio, and not being a person who can time the market, I can live with this. Back in the day we were down circa 60% off highs at one point. 

Thrugelmir

doe808 said:

Thrugelmir said:

doe808 said:

MDMD said:

Prism said:

Yes Baillie Gifford roughly halved their holdings in Tesla a couple of months ago.

Hasn’t stopped the SMT share price falling off a cliff!

for us long term holders, they built their own mountain, so a small decent doesnt matter too much in the big picture. 

Only 27% fall so far off peak share price so far. It's only money so who cares. 

And the odds are it will fall further. but at 5% of my portfolio, and not being a person who can time the market, I can live with this. Back in the day we were down circa 60% off highs at one point. 

An active fund isn't tracking the market though.  You would need to hold a passive investment of some kind to achieve that.  

[Deleted User]

AlanP_2 said:

Grenage said:

I know that Elon is a bit eccentric, but it seems like an odd move.  Surely he should be doing this with his funds rather than that of Tesla?

I agree, Tesla is not an investment company so taking a speculative punt with shareholder funds seems rather bizarre.

Bizarre or not, this seems to be a trend nowadays. Tesla doesn't even hold most bitcoins comparing to other publicly listed companies. This is list I found:

https://www.bybt.com/BitcoinTreasuries

doe808

Thrugelmir said:

doe808 said:

Thrugelmir said:

doe808 said:

MDMD said:

Prism said:

Yes Baillie Gifford roughly halved their holdings in Tesla a couple of months ago.

Hasn’t stopped the SMT share price falling off a cliff!

for us long term holders, they built their own mountain, so a small decent doesnt matter too much in the big picture. 

Only 27% fall so far off peak share price so far. It's only money so who cares. 

And the odds are it will fall further. but at 5% of my portfolio, and not being a person who can time the market, I can live with this. Back in the day we were down circa 60% off highs at one point. 

An active fund isn't tracking the market though.  You would need to hold a passive investment of some kind to achieve that.  

80% of my holdings are in Vanguard 80:20, which I thought was reasonable. The rest are in smaller satellite funds. Happy to be advised if this seen as inapproptate these days as a strategy (late 30's, no dependents, overpaying mortgage and into pension)

Thrugelmir

doe808 said:

Thrugelmir said:

doe808 said:

Thrugelmir said:

doe808 said:

MDMD said:

Prism said:

Yes Baillie Gifford roughly halved their holdings in Tesla a couple of months ago.

Hasn’t stopped the SMT share price falling off a cliff!

for us long term holders, they built their own mountain, so a small decent doesnt matter too much in the big picture. 

Only 27% fall so far off peak share price so far. It's only money so who cares. 

And the odds are it will fall further. but at 5% of my portfolio, and not being a person who can time the market, I can live with this. Back in the day we were down circa 60% off highs at one point. 

An active fund isn't tracking the market though.  You would need to hold a passive investment of some kind to achieve that.  

80% of my holdings are in Vanguard 80:20, which I thought was reasonable. The rest are in smaller satellite funds. Happy to be advised if this seen as inapproptate these days as a strategy (late 30's, no dependents, overpaying mortgage and into pension)

My comment was with regards to timing the market.  Active funds by their very nature tend to be cyclical. Fund managers have never retained star status indefinitely. Great ideas get copied and the return correspondingly diluted. 

Ciprico

So if tesla keep falling will they be removed from the dj, accelerating the fall further....

[Deleted User]

Ciprico said:

So if tesla keep falling will they be removed from the dj, accelerating the fall further....

Well, tesla only got in to the SandP500 a few months ago. It's a hugely volatile stock that is now also the highest volume traded share of them all. Good as it is, Baillie Gifford's funds hardly reflect the spectacular price rise of Tesla stock in 2020 - it was up over 700% at one point. So the potential downside in 2021 is scary. 

Edit:  Good luck to those who were on board early and didn't bail in 2020 though. To state the obvious, it's a lot easier to hold when you're miles ahead rather than be looking to invest on Monday. I missed that boat, so I won't be getting involved; the stock is too volatile for me.
 

BuildTheWall

Ciprico said:

So if tesla keep falling will they be removed from the dj, accelerating the fall further....

Rules for removal is not just fall in price