Hey, I’m Steven and this is Solving The
Money Problem.
If you’re new, welcome.
If you’re not, welcome back.
Today, Tesla stock makes up over 90% of my
stock portfolio by value and my average cost
basis is in the mid $200s.
I’m an opportunistic investor.
Most are not.
Most investors prefer someone else to do the
thinking for them.
But I’m not most investors.
I’m also not giving investment advice, just
sharing my investment thinking and my reasoning.
In this video, I’ll share what I’m doing
with Tesla stock.
Not what YOU should do.
Instead of boxing myself in and never deviating
from my plan, I continually reassess and look
for opportunity.
Rather than being spoon fed my beliefs, I
seek out my own information and form my own
conclusions.
This led to me investing aggressively in Australian
real estate from 2010 to 2015.
While everyone told me I was mad and would
lose everything, I acted with confidence because
I had done the homework, ran the numbers,
and drawn the conclusion that there was no
greater opportunity at that time.
I laid out my plan and executed.
It worked out so well that people noticed
and started to ask for help.
LOTS of them.
Hmm, another opportunity I thought.
This time in business.
So, I quit my job as a designer and started
a finance business to help others invest in
real estate, like I had.
I went all-in and worked my f**king face off
doing 80+ hour weeks for a few years, helping
hundreds of people grow their wealth and winning
some awards along the way.
Notice a pattern?
I pursue opportunity.
Wherever it is.
Aggressively.
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I’d also been following Tesla since the
2008 Roadster.
By 2015 it was becoming increasingly clear
that Tesla was uniquely positioned to DOMINATE
the EV market but still had major execution
risks.
In early 2016, not long before the Model 3
unveil, I began buying Tesla stock.
Along the way I added Google and Amazon but
as Tesla ramped production, my confidence
in Tesla continued to grow and my position
along with it.
As I built out my position, the case for Tesla
continued to become more compelling.
In 2018, I reached my target number of shares.
Then I retired and began travelling.
I kept a close eye on things and it became
increasingly clear that Tesla had WON.
I did not know of a greater investment opportunity
anywhere, PERIOD.
Not even CLOSE.
So what did I do?
I bought more Tesla stock and set a new target
number of shares.
What else was I gonna do?
I mean, cash is trash.
In early 2019 Tesla stock began tumbling due
to Wall St and the finance media literally
not understanding their Q1 earnings.
Another HUGE opportunity.
So I scrambled to buy more -- selling a bunch
of other stocks and following it all the way
down to $185.
The opportunity was too good to ignore.
I reached my new target number of shares.
Then 2020 happened.
Out of nowhere, global panic driven by fear
and misinformation.
Next minute, stocks fall off a cliff, I calmly
assess the situation, determine an ENORMOUS
opportunity, make multiple videos explaining
what’s going on, get destroyed in the comments,
buy loads more Tesla stock in March and April
and well, we know how that worked out.
So why the history lesson?
To make a point.
I’m an opportunistic investor.
I don’t pigeonhole myself.
I don’t decide “I’m only investing in
this asset class, or this company”.
F**k that.
I seek out opportunities.
I don’t care where or what they are.
This YouTube channel is another great example.
I started it for fun 6 months ago and it unexpectedly
blew up.
Another opportunity.
And guess what?
I’ve made the most of it.
And what am I doing with this newfound income?
Buying more Tesla stock.
Why?
I still can’t find a better opportunity
anywhere.
I don't WANT to be buying more Tesla stock
but I’m not a fan of diversification for
its own sake.
To me, that’s just insurance against ignorance.
And I’m confident (or arrogant) enough to
back my investment decisions.
In May 2020 I’m investing heavily in just
two assets.
One.
Attention. (by the way, thanks for watching
p.s.
Start a YouTube channel and thank me later).
And two.
Tesla stock.
ALL my time is focused on this channel.
ALL my money is buying Tesla stock.
If Tesla stock ultimately makes up 99% of
my stock portfolio, I don’t care.
If tomorrow I discover a greater investment
opportunity and abandon Tesla, I don’t care.
But for now, I have a new target number of
shares -- more than DOUBLE my original goal.
And I’m working relentlessly towards its
attainment AS SOON AS POSSIBLE.
I’m a LONG TERM investor.
I mean multi-decade.
I make my decisions through that lens and
I see Tesla stock marching steadily toward
a multi-thousand dollar price this decade
as they continue to execute and scale.
“Tesla stock price is too high imo”
Elon Musk recently tweeted that Tesla stock
price was too high.
This isn’t the first time he’s made such
comments but when pressed to clarify, it turned
out Elon was really just trying to send a
message to the haters:
“F**k you.
I don’t care about money, watch me destroy
billions of my net worth with a tweet, b**ches.
p.s.
I’m selling all my possessions too.
What are you gonna do now?”.
The stock tumbled over 10% and of course,
I bought more.
Thanks for the discount Elon.
A week later and the stock is ABOVE the level
it was before Elon’s tweet.
How easily fools part with their money.
Buying At All Time Highs
I know many of you watching now are a little
frustrated.
You want to buy Tesla stock.
It’s approaching all-time highs.
You’d rather pay less.
You’d rather wait for it to dip.
While you wait and hope, I’m buying more
because I am confident in my reasoning.
The case for Tesla has become successively
more compelling each year.
As I mentioned, my average cost basis for
Tesla stock is in the mid $200s.
Today, I’m buying at more than triple my
cost basis and I still believe the stock is
cheap.
Through the eyes of a long term investor,
2020 prices are a JOKE.
Do yourself the favour of looking at Amazon’
stock price over time.
Literally every single person who ever bought
Amazon stock at an all time high would be
up today.
This is what a growth company looks like.
In my opinion, Tesla is following the same
trajectory.
Sure, in the short term, the stock could do
anything.
In the past year, Tesla’s stock reached
highs of $968.99 and lows of $176.99.
But over the long term, the trend is inevitably
up.
Much like Google’s dominance in search became
an undeniable truth, just as Amazon’s dominance
in retail became an undeniable truth, just
as Apple’s dominance in consumer electronics
became an undeniable truth, Tesla’s dominance
in this new world of computers on wheels is
a done deal.
Everyone Else Is F**ked
And That’s Good For Tesla
Even before the global virus panic I was publicly
declaring most legacy automakers wouldn’t
survive the decade without going bankrupt,
merging or being acquired.
This process has been dramatically accelerated.
We’ve seen automakers draw down billions
in lines of credit, go to markets to borrow
more, have their debt downgraded, cancel EV
plans, cancel new factories, cancel dividends,
slash sales forecasts, let go of employees,
warn of multi-billion dollar losses and more.
Meanwhile, Tesla is full speed ahead and still
selling every vehicle it makes.
This global s**tstorm has presented a gift
from the gods.
While everyone else is cutting back and slowing
down, Tesla is growing fast and speeding up.
Tesla will gain enormous market share during
this global downturn and this fact is becoming
obvious to all but the thickest of thick.
Everyone is getting it now.
The finance media.
Wall St analysts.
Armchair investors.
Big institutional money has been flowing into
Tesla.
Analysts are constantly upgrading the stock.
Everyone is talking.
Millenials are buying.
In my opinion, what we’re seeing now is
the “Oh s**t” moment.
Tesla stock is crossing the chasm of mainstream
perception from “terrible” to “obvious”
much like Amazon and Apple did years earlier.
As this happens, I believe we’ll see big
retail and institutional money abandoning
fossil fuels and legacy automakers in favor
of the future aka Tesla.
It’s kind of absurd, but if you want to
invest in solar, who better than Tesla?
If you want to invest in storage, who better
than Tesla?
If you want to invest in electric vehicles,
who better than Tesla?
If you want to invest in clean energy, who
better than Tesla?
If you want to invest in AI, big data and
autonomous driving software, who better than
Tesla?
If you want to invest in a company that makes
vehicles of any kind, who better than Tesla?
S&P 500 Inclusion
Tesla is a good chance for inclusion in the
S&P 500 this year.
This really matters.
Should they meet the criteria, huge amounts
of institutional money will flow into the
stock as funds seek to match the index putting
upward pressure on the stock price in the
lead up to--and in the wake of--its inclusion.
While not certain, odds are better than even
for Tesla’s inclusion in the S&P 500 later
this year.
What If Tesla Stock Drops After I Buy?
Great!
The cheaper the stock is, the more I can buy,
and sooner.
For some reason, a lot of so-called “investors”
think it’s bad if a stock you buy falls
below the price you paid for it.
Why?
Nobody’s forcing you to sell.
If you turn up to the grocery store one day
and discover your favorite brand of milk is
half price, do you go cry in the corner for
all the milk you’ve ever bought at full
price?
Or do you buy your discounted milk with a
big smile on your face?
Or worse, are you so stupid that you would
decided never to buy milk again unless it’s
even cheaper than it’s current price?
Something to think about.
My Buying Strategy
So, how am I buying?
It’s pretty simple really.
When I have money, I buy.
I’m not waiting for “the perfect time”.
If I have money, I buy.
I will keep buying until I reach my goal.
The end.
Admittedly, I have half a dozen income streams
flowing into my bank accounts every month
so this gives me more-than-weekly buying opportunities.
The point is, while many others are “waiting
for the dip” because “Tesla stock is so
expensive”, I’m seeing Tesla stock as
dirt cheap because of my long term investment
perspective and buying every time I can.
Imagine it’s 2030 and you and I are having
a conversation.
You tell me you were interested in Tesla stock
in 2020 but $800 seemed too high so you decided
to wait for a dip.
But it never came.
So you never bought.
Tesla is now doing 10 or 20 million vehicles
a year, completely dominates robotaxis, solar
and storage, has industry-leading margins,
is banking tens of billions in quarterly profits
and shows no signs of slowing.
$800 looks very cheap now, doesn’t it?
Why Did I Make This Video?
This channel exists so I can share my investment
thinking, investment reasoning and investment
actions.
The whole idea is to encourage you to think
for yourself by showing you an example of
how ONE investor goes about his business.
So I’m being fully transparent.
I am currently buying Tesla stock every time
I have money.
I don’t care if I pay more or less than
yesterday or last week.
I don’t care if the stock tumbles 50% tomorrow.
None of that matters.
The ONLY thing that matters is Tesla executing
their plans.
And if Tesla keeps executing their plan, I’ll
keep executing mine.
I’ve run the numbers, shuffled a few things
around and feel confident I can reach my new
target number of Tesla stock around mid year.
Vote in the poll now to let me know if you
guys would like to see how many Tesla shares
I own.
If enough say yes, I’ll reveal all when
I reach my new goal.
One final thing to mention is Tesla’s upcoming
battery investor day -- later this month.
Tesla will blow our minds.
Of this, I have no doubt.
How quickly the market will understand the
implications however, is anyone’s guess.
But I’m not waiting to find out.
Once again, this isn’t investment advice.
Just what one investor is doing.
I’m Steven Mark Ryan, this is Solving The
Money Problem and I love you all.
Thanks so much for watching.
Let me know your thoughts in the comments
below.
Are you buying Tesla stock?
What is your investment strategy?
How many shares do you own and plan to own?
ANd of course, if you have any ideas for future
videos, let me know.
I read ALL your comments.
p.s.
If you’re still watching, you’re AWESOME.
This channel has kind of blown up since it
launched and I’m working on making the best
possible content for you guys, but it takes
time.
Consider supporting the channel at http://patreon.com/solvingthemoneyproblem
so I can continue creating content for you
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There’s a link in the description.
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To learn more click the JOIN button next to
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Either way, the best form of support is you
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