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Free registration at the forum removes this block.Stocks don’t compound. The company either grows or doesn’t.Would say Tesla, with 10 year investing horizon. Seems overvalued now, but compunding works wonders.
I like the idea of Beyond Meat (BYND) - but do your own research.
Stocks don’t compound. The company either grows or doesn’t.
Tesla has more competition than ever right now. The only thing of Tesla I’d buy right now is a car.
As someone who is quite familiar with the "fake meat" space I'd stay away.
I like the product roadmap and everything, but the space is getting incredibly crowded. BYND used to be the only game in town. Now it's one of many, literally a dozen choices now, including white label brands from grocers.
You do base it on hype tho. Tesla's current market cap is higher than the whole automotive industry + Progressive + All State (Insurance) + Lyft + Uber + Dominion Energy. In the last few days Tesla's market cap increased by 2 times Ford+GM combined.
Meanwhile companies like Berkshire made more in profits than Tesla did in revenue. It reminds me of the dotcom bubble where everyone predicted that Cisco would basically own the world... They didn't and their stock is still not back at the level it was in 2000. Tread carefully. Also a 5x would mean a 5 trillion market cap.
Edit: I am not saying Tesla isn't a great company. It is, but just like Cisco the stock can detach itself from the underlying business.
Exactly... How do you value a company that isn't making any money?
...I guess the same way you decide if Bitcoin is "undervalued" or not, lol
Sometimes the more I think, the worse I do. I wonder sometimes if I just decided to invest like an idiot if I’d do better.I try to balance everything, so I have some portion in VOO, QQQ, then some in my individual selections, then some amount for options, etc...
But the more I read, the more my strategies change, and (hopefully) improve.
r/investing is OK, but r/WSB...nope unless pumping TSLA and SPY on 0 DTE calls is your thing (or watching some fool do puts on Apple )Join reddit.
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Yeah, if they just let their money stay parked in stocks...without accounting for sector rotation, seasonals or cycles. I find doing stocks requires a more active presence...no longer can you go passive. That means actually taking the time to research more -- besides just leaving the task to a guru or mutual fund agent.The sad reality is almost no one beats the market.
That, and the fact that this thread is titled “Undervalued Stocks” and BYND has no earnings.As someone who is quite familiar with the "fake meat" space I'd stay away.
I like the product roadmap and everything, but the space is getting incredibly crowded. BYND used to be the only game in town. Now it's one of many, literally a dozen choices now, including white label brands from grocers.
"It's down!! Buy more and HODL"What was the formula again.. lets see.. one part greed, mixed with 2/3 ignorance, sprinkled with some congnitive dissonanse for that pure to the moon experience?
"Tesla's return on common equity for fiscal years ending December 2016 to 2020 averaged -19.7%. Tesla's operated at median return on common equity of -21.3% from fiscal years ending December 2016 to 2020. Looking back at the last five years, Tesla's return on common equity peaked in June 2021 at 12.4%"Amazon had crazy pe ratios whole time, like Tesla now. It's the growth rate of the business. For example 1.5^10 is 57x.
Tesla has managed that for now. In the future we will see. Of course the TAM caps it. Car, energy and transportation in General, is luckily huge market.
You do base it on hype tho. Tesla's current market cap is higher than the whole automotive industry + Progressive + All State (Insurance) + Lyft + Uber + Dominion Energy. In the last few days Tesla's market cap increased by 2 times Ford+GM combined.Thanks for book recommendation. Have listened one of Marks books long time ago, but not that one.
In General I think its good advice to stay away from hyped up growth stocks. If you Invest in them you better have good reason to. Because often times the hype creates valuation that already prices in a lot. And there are risks.
And there's very few companies that are truly extraordinary, not just in powerpoint but in reality.
However, I believe based on my research, that Tesla is one of those cases where reality actually is as good as hype or even better than that from investment perspective. I don't base this on hope.
But you must do your own due diligence. If you don't, then its often hope and feelings that drive your decisions.
The big winners are never large enough.I wish I had that problem. I was kind of chicken about it - it met all of my criteria but I definitely did not open a large enough position.
Value index ETFsHi ! I am looking for undervalued stocks in the market to buy, I am doing analysis of some that I find interesting, but I would like to get feedback and have more options to investigate.
I'm using a translator in case something is misspelled hehe!
I second this. Get a good foundational understanding and build upon it.If you really want to understand investing in stocks for value, you should read a book about it instead of taking random people's recommendations.
The Intelligent Investor is a good place to start. I read it a few years ago, and though a lot of it is probably not useful to you right now (preferred vs common stock etc), there are some key rules you will learn that will make a huge difference in the way you invest. The biggest lesson is investing vs. speculation.
Look at the amount of debt the company has (debt to equity ratio), look at return on equity, and train your brain to think in percentages and ratios, not numbers.
That's not the only book to read by the way, but it's a good start. Try some books.
I try to balance everything, so I have some portion in VOO, QQQ, then some in my individual selections, then some amount for options, etc...I second this. Get a good foundational understanding and build upon it.
The sad reality is almost no one beats the market. If you want to be lazy, and probably better than average… Just DCA a bunch of SPY over the next 50 years. You’ll certainly beat the Edward Jones chump with his hand in your pocket.
Thats easy, but takes more discipline than I have, so for better or worse I “make trades.”
We have the inflation wild card to consider as well.
Generally its a cesspool full of degenerates and addicts, but you'll find some gems in the "DD" section:r/investing is OK, but r/WSB...nope unless pumping TSLA and SPY on 0 DTE calls is your thing (or watching some fool do puts on Apple )
Yeah, if they just let their money stay parked in stocks...without accounting for sector rotation, seasonals or cycles. I find doing stocks requires a more active presence...no longer can you go passive. That means actually taking the time to research more -- besides just leaving the task to a guru or mutual fund agent.
If you really want to understand investing in stocks for value, you should read a book about it instead of taking random people's recommendations.
The Intelligent Investor is a good place to start. I read it a few years ago, and though a lot of it is probably not useful to you right now (preferred vs common stock etc), there are some key rules you will learn that will make a huge difference in the way you invest. The biggest lesson is investing vs. speculation.
Look at the amount of debt the company has (debt to equity ratio), look at return on equity, and train your brain to think in percentages and ratios, not numbers.
That's not the only book to read by the way, but it's a good start. Try some books.
Exactly... How do you value a company that isn't making any money?That, and the fact that this thread is titled “Undervalued Stocks” and BYND has no earnings.
My BITO short play is up 20% today......I guess the same way you decide if Bitcoin is "undervalued" or not, lol
Damn guys, don't you tease the Tesla investorI agree, less the buying the car part.
too expensive for what you get IMO.
What exactly gives you the confidence in Tesla? The low P/E ratio?Damn guys, don't you tease the Tesla investor
Am holding position of about 300k now in TSLA. Started first investing 7 years ago in Tesla. Switched from small Amazon bet to Tesla as I saw more potential. And still betting that Tesla will 5x or more in 10 years.
But had I - say - first started a Company, sold it and then invested to Tesla with bigger bet size, would be now much better. MJ's philosophy holds.
To tie back to topic. Great companies often look pricy. But if you have long term View and reason to believe that market does not Account for everything, the price might not be too pricy after all.
Wait a minute, so you are hoping that one day Tesla has a 30x PE ratio? And you fully expect it to stay above 100x and still it’s a good investment?
Oh my… no wonder I cannot understand the latest stock market pricing. People have gone mad.
@otek
Appreciate you engaging in this conversation and understand where you are coming from. I feel like I've been there (I am clearly older than you).
You are seeking validation of a string of cumulative events. Telsa must grow 50% every year. Tesla's profits must remain the same or better. Tesla must have new products etc. With that your prediction of 10x seems to make sense. Your "conservative" view of 50% off this prediction is a problem we've seen before. When? A long, long time ago... in financial markets area it's so long that no one remembers that time.
In early 2008, the five-year default rate for AAA-rated collateralized debt obligations (CDO) was 0.12 per cent. The Standard & Poor (S&P) rating meant the predicted default occurred only 0.12 per cent of the time, but in late 2008 the default rate came closer to 28 per cent.
This gap between forecast and reality was a gigantic prediction error. In fact, the mortgage-backed securities were extremely sensitive to changes in economic conditions and their defaults triggered the global financial crisis.
If S&P had assumed that CDOs were correlated, the impact on the financial industry would not have been as profound and maybe there would have been no global financial crisis of 2007-2008.
In retrospect, the assumption that defaults on some housing would not trigger other defaults seems obviously wrong. If the analysts at S&P had prepared to be wrong on this one assumption, their range of probable default rates would then have been too big to ignore.
Wrong predictions aren’t new and as the old joke goes, economists called nine out of the last six recessions correctly. So why is it so difficult to make predictions?
And that's my problem with current valuation of Tesla - EVERYTHING has to go right for you to make a tiny profit. The asymmetry of risk/reward probability is in the wrong direction, against you.
Hope you find this helpful. And remember, no one knows the future - even lotto is won by someone some of the time.
P.S. If you plan on staying in the investment space, I recommend Howard Marks' "Mastering the Market Cycle" book.
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