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Old 08-20-2020, 07:54 AM   #21
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I'm grateful for all your input. This is the first time I'm selling down my investments to buy something I need/want. When I bought my Tesla car a while back I used cash from savings.

Since it was that car that made me swap some index funds for TSLA it ended up being a good investment. Along the lines of investing in what you know and understand. Well - I realized that this car was far ahead of anything else I had driven. So I just had to get some shares.

My Bitcoins I bought earlier - and for pocket change. I kind of liked the idea and wanted to try it out. But that was more of a lottery ticket. I still don't claim to understand anything about Bitcoin and where it may go from here.

So some insight and some luck here helped me to counter other investments that did not go that well...
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Old 08-20-2020, 08:26 AM   #22
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So which one should I sell down? AKA which one have the greatest potential future and should be kept?


I have some thoughts but would like to hear what you think?
I would hold TSLA until after the split. Its been surging, and frankly people have an illogical desire to buy post-split because it seems so much more affordable on a per share basis.
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Old 08-20-2020, 08:31 AM   #23
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... Since it was that car that made me swap some index funds for TSLA it ended up being a good investment. Along the lines of investing in what you know and understand. Well - I realized that this car was far ahead of anything else I had driven. So I just had to get some shares. ...
Be a little careful with this line of thought generally. A good company is not necessarily a good investment. Two different things, often conflated.

Here is investing patriarch Ben Graham (in "The Intelligent Investor") on the problem:
" ... we hope to implant in the reader a tendency to measure or quantify. For 99 issues out of 100 we could say that at some price they are cheap enough to buy and at some other price they would be so dear that they should be sold. The habit of relating what is paid to what is being offered is an invaluable trait in investment. In an article in a women’s magazine many years ago we advised the readers to buy their stocks as they bought their groceries, not as they bought their perfume. The really dreadful losses of the past few years (and on many similar occasions before) were realized in those common-stock issues where the buyer forgot to ask “How much?"
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... So some insight and some luck here helped me to counter other investments that did not go that well...
This is why we diversify. If positions in Bitcoin and Tesla are small relative to one's portfolio, then one can safely have fun with them. Not all "insight" seen through the windshield, though, is also "insight" when seen in the rear view mirror.
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Old 08-20-2020, 04:04 PM   #24
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Be a little careful with this line of thought generally. A good company is not necessarily a good investment. Two different things, often conflated.

I agree with you. To go more into the details - I bought a modest amount in TSLA just because I liked the car. But then I started to look into the company. And eventually believed it could be a good investment. Then I bought about 10x the first investment.
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Old 08-21-2020, 09:36 AM   #25
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I'm grateful for all your input. This is the first time I'm selling down my investments to buy something I need/want. When I bought my Tesla car a while back I used cash from savings.

Since it was that car that made me swap some index funds for TSLA it ended up being a good investment. Along the lines of investing in what you know and understand. Well - I realized that this car was far ahead of anything else I had driven. So I just had to get some shares.

My Bitcoins I bought earlier - and for pocket change. I kind of liked the idea and wanted to try it out. But that was more of a lottery ticket. I still don't claim to understand anything about Bitcoin and where it may go from here.

So some insight and some luck here helped me to counter other investments that did not go that well...
This is how I retired. When the orange iMac came out, I kind of fell in love with Apple and bought some stock but when the iPhone hit the market I went nuts and got a boatload. With the way things went Apple quickly took over my portfolio. I recently forced myself to sell a lot of it because now that I don't work it's nuts to rely on one stock for my finances... but is it? Investing in what you know and believe in it is in my opinion the secret of investing in individual stocks.

So going back to your original question: I would hold on to your BTC as a hedge to market volatility and dollar value. In my opinion stock market is right now the place where inflation shows - we all know that the fundamentals are not there for a lot of listed companies. It's also becoming apparent that we might be approaching a point where US economy - admittedly consumer based - simply snaps. There will be no money in consumers hands and once the evictions and foreclosures start there will also be no way to put that genie back in a bottle. As much as I'm not a fan of printing more money, I can't wait for it to restart. And in my opinion USD world reserve currency status will face serious challenges as a result. Hence my bet on BTC.
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Old 08-21-2020, 01:34 PM   #26
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Investing in what you know and believe in is in my opinion the secret of investing in individual stocks.
This works until one day you think you know a lot about the future of an industry and get Seadrilled.
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Old 08-21-2020, 02:05 PM   #27
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This works until one day you think you know a lot about the future of an industry and get Seadrilled.
I'm not advocating in abandoning ETFs at all. It's definitely the correct approach to long term investing. But if you're going to buy individual stocks (for fun or to support the company... any reason) then don't just listen to Jim Cramer or clueless Goldman Sachs analysts (https://www.macobserver.com/news/gol...-35-this-year/ ) without having any idea what the company they're talking about is doing. I was too cheap to sign up for Netflix early but the minute I did, it was apparent to me that they had the unbeatable service to sell. I wanted them to prosper and I figured I cannot be the only one. There isn't a lot of these kind of stocks out there that I have personal relationship with but I find investing in them rewarding. It's like rooting for your sports team
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Old 08-21-2020, 02:30 PM   #28
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This is an interesting question but you are asking the wrong audience. You need someone with expertise in momentum investing. I used to do it back 15 years ago when my stash was inadequate. Now I am no longer expert.

I would take the advice of selling some of both and extend it to selling the same percentage of all three. This flies in the face of traditional rebalancing. But it maintains your existing portfolio makeup without trying to second guess any particular component.
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Old 11-24-2020, 01:36 PM   #29
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In case anyone cares - this is what I ended up doing:

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I'm buying a new home soon and while it will be a little more expensive than my current it's main purpose is to relocate. So not a major new cost.


Looking at my assets and wondering what to sell I can see that both my crypto coins (mostly BTC) and my TSLA shares have done much better than my index funds.


So which one should I sell down? AKA which one have the greatest potential future and should be kept?


I have some thoughts but would like to hear what you think?

90% of my cost financed by selling Bitcoin at $15,500


10% of my cost financed by selling Tesla at $418


I still have some of my Bitcoin and most of my Tesla investments left.

Both assets have since reached much higher price levels.
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Old 11-24-2020, 01:45 PM   #30
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In case anyone cares - this is what I ended up doing:




90% of my cost financed by selling Bitcoin at $15,500


10% of my cost financed by selling Tesla at $418


I still have some of my Bitcoin and most of my Tesla investments left.

Both assets have since reached much higher price levels.
Fun. We paid cash and let the bank take most of the risk in a note they loaned to me... then I refinanced to lessen the interest blow, because I hate interest. If I had a choice to sell TSLA and BTC I don't know if I woulda done that... I am a buy and hold investor still accumulating though so YMMV. Still have my equities all in place and also could pull out equity in the home as that albeit slower then our stocks, has grown quite nicely as well.
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Old 11-30-2020, 04:19 PM   #31
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I still have some of my Bitcoin and most of my Tesla investments left.

Both assets have since reached much higher price levels.
Awesome! Some "experts" project big run up soon based on intuition.
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Old 12-01-2020, 06:34 AM   #32
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To NJ Howie: I understand your reasoning thinking Tesla stock is ahead of itself, being worth 9 times more than a year ago. This is what high growth companies do however, they grow fast. And they have high P/E ratios. I've made the same mistake in my thinking before, at least I think it was a mistake from what I've learned and in making the adjustment have made a lot of money. I lost out on 10x in Amazon thinking that I should only invest in companies showing a profit, for example, but if I had researched it better, I would have learned they were shoveling all their profit back into scaling the business. In researching Tesla, my conviction is that it is going to continue to appear to be "way ahead of itself" in its stock price because the future of Tesla as a technology company is going to be amazingly profitable. Deep research into the company might change your mind, but I'm not trying to change it. The beauty of investing is that it is an individual thing and people don't see value in the same things I guess that is why some are selling while others are buying and vice versa. We share ideas and opinions, but we invest alone.
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