🧠 Why Tesla Is a Battleground Stock
Friends,
On September 11, 2001, the tiny Canadian town of Gander increased its population by 73%. That’s because 7,000 people flying on 38 airplanes from around the world were forced to land in the wake of terrorist attacks.
They ended up stranded in Gander for an entire week. Many were taken into the homes of complete strangers for the duration.
Imagine you were a Gander resident about to take someone in; what kind of information would you want to know? Off the top of my head, I’d ask:
- How old were the guests?
- Did they have specific dietary needs?
- Are there any medical conditions to be aware of?
- What would help them be most comfortable?
The list could go on and on. The point: context matters. While some accommodations are obvious (shelter, food, etc), most are far too idiosyncratic for one-size-fits-all answers.
It’s a lesson we forget far too quickly with investing. Sure, there are some absolute necessities everyone is after — namely, the preservation and/or growth of one’s nest egg.
But beyond that, context is everything.
Imagine some asks, “Are small-cap, growth stocks are a good investment?”
The correct follow up would be: “It depends: who is buying?”
Is this a 20-something or an octogenarian?
Does this person need to draw on the money in the next year, or is it ear-marked for a retirement decades in the future?
Do they lose sleep at the slightest market gyration, or are they blissfully unaware of macroeconomics?
Hop on social media, and discussions about “battleground stocks” (ahem, Tesla) turn into shouting matches.
What’s really happening: people are playing different games. Everyone has different timelines, goals, and risk tolerances. But they don’t realize it. So they shout past each other.
The point isn’t to throw up your hands and give up. It’s to clearly define what game you are playing.
Do that and you’ll have a much easier time figuring out what information should be listened to and what information should be ignored.
– Brian Feroldi, Brian Stoffel & Brian Withers
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One Piece of Timeless Content:
The ChooseFI podcast is entering its 6th year. With more than 400 podcasts available for listeners, it is one of the best sources of information for those interested in reaching Financial Independence. Check out the Jan 2nd episode to hear Brian Feroldi talk about investing lessons he learned in 2022.
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If you are a reader, Library Mindset is a great Twitter follow. Here’s a thread on 20 life-improving quotes for people of any age.
June 26th 2022
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Portfolio Chart‘s mission is to “provide tools and resources that empower everyday people to achieve their financial goals while enjoying the journey.” Being mission driven ourselves, we love this. The site contains numerous resources to help you set up market tracking set-it-and-forget-it portfolios.
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