Gyroscopic Investing

I am wondering how people feel about Tesla entering the SP 500? Personally I feel like the companies numbers are “inflated” at the very least. Weighted etf’s like VOO will have to allocate a large percentage of their funds to the stock that I think could be a house of cards.

They get government subsidies so they'll fail when the central planners decide. Ditto Boeing.

https://www.reddit.com/r/EnoughMuskSpam ... overnment/

But yeah, it's irritating to own stocks that the lottery-ticket investors buy. But not worth the cost to deviate from capweight.

boglerdude wrote: ↑Tue Aug 11, 2020 5:10 am ...
But yeah, it's irritating to own stocks that the lottery-ticket investors buy. But not worth the cost to deviate from capweight.

+1 It’s a bubble stock.

Personally I think it could be nearly worthless if all the accounting tricks, subsidies, and competition are taken into account. I hate that I am forced to purchase the stock through VOO.

Banks are especially bad.

True. Now I feel worse with VOO. I should switch to the equal weight sp 500 etf. Any recommendations on a good one.

Well, I guess it's good that I did not even see this until now. Really, like 5-6x where it was in March?

Did I miss something? Did they sell a few million cars this past quarter? What a crock.

Cortopassi wrote: ↑Tue Aug 18, 2020 10:46 am Well, I guess it's good that I did not even see this until now. Really, like 5-6x where it was in March?

Did I miss something? Did they sell a few million cars this past quarter? What a crock.

Wow.

I wonder whether the SpaceX enthusiasm is boosting that.

I've run a momentum stock system for several years and this year TSLA is my favorite stock followed by NVDA.

Not sure why anyone on the board would care if Tesla is in the S&P 500. I assume everyone knows the S5 is the 500 largest cap stocks in America and the S5 is a cap weighted index. If you don't like the method, don't buy it. (RSP is an equal weight S5 ETF, but with higher fees than a vanilla S5 index)

For what I do most of the time I have no idea what I'm even buying in terms of a business...but I think it's fair to say Mr. Market thinks electric cars and trucks are the future over combustion engines. By most accounts TLSA car quality is ok but not great and no one is even close on the technology front and at the scale TSLA is at.

For sure however, if you are a value guy/gal, TSLA definitely ain't for you.

As for me, I move on when the mojo ride is over and the system tells me to move along to something else. I've never understood hating something you buy when it comes to investing. Investments aren't personal, we shouldn't make them personal. They are assets, they have characteristics that differ depending on what you invest in.

Not only that, they aren't particularly "renewable". Those massive batteries rely on rare materials which there aren't enough of.

https://www.forbes.com/sites/tilakdoshi ... -vehicles/

Xan wrote: ↑Wed Aug 19, 2020 7:35 am Not only that, they aren't particularly "renewable". Those massive batteries rely on rare materials which there aren't enough of.

https://www.forbes.com/sites/tilakdoshi ... -vehicles/

Just this morning, while thinking about buying a new lawn mower, an electric one crossed my mind. But then I told myself that I do not want to deal with battery replacement.

Vinny

MangoMan wrote: ↑Wed Aug 19, 2020 6:50 am There is no doubt that the powers that be want to move all vehicles to electric. I have to wonder tho: There are currently around 15M registered vehicles in the state of CA. The power grid can not currently handle the capacity needed (brown outs) when very few of those vehicles are plug-in. What's gonna happen when the entire state is plugging their cars and trucks in at the same time people are running their air conditioners?

FWIW, one of the touted advantages of a smart grid is that things could be set to charge overnight when other electronics aren't being used (or any time when power demands on the grid are slack), helping electric companies peak shave.

MangoMan wrote: ↑Wed Aug 19, 2020 11:37 am

Kriegsspiel wrote: ↑Wed Aug 19, 2020 7:57 am

MangoMan wrote: ↑Wed Aug 19, 2020 6:50 am There is no doubt that the powers that be want to move all vehicles to electric. I have to wonder tho: There are currently around 15M registered vehicles in the state of CA. The power grid can not currently handle the capacity needed (brown outs) when very few of those vehicles are plug-in. What's gonna happen when the entire state is plugging their cars and trucks in at the same time people are running their air conditioners?

FWIW, one of the touted advantages of a smart grid is that things could be set to charge overnight when other electronics aren't being used (or any time when power demands on the grid are slack), helping electric companies peak shave.

Correct. I set my Tesla to charge after midnight when rates are lower. Same with my dishwasher. But we're talking 15M vehicles in CA alone. I don't think the current grid there can handle anything close to this.

What kind of amperage does your Tesla draw while charging?

MangoMan wrote: ↑Thu Aug 20, 2020 4:19 pm

glennds wrote: ↑Thu Aug 20, 2020 4:07 pm

MangoMan wrote: ↑Wed Aug 19, 2020 11:37 am

Kriegsspiel wrote: ↑Wed Aug 19, 2020 7:57 am

MangoMan wrote: ↑Wed Aug 19, 2020 6:50 am There is no doubt that the powers that be want to move all vehicles to electric. I have to wonder tho: There are currently around 15M registered vehicles in the state of CA. The power grid can not currently handle the capacity needed (brown outs) when very few of those vehicles are plug-in. What's gonna happen when the entire state is plugging their cars and trucks in at the same time people are running their air conditioners?

FWIW, one of the touted advantages of a smart grid is that things could be set to charge overnight when other electronics aren't being used (or any time when power demands on the grid are slack), helping electric companies peak shave.

Correct. I set my Tesla to charge after midnight when rates are lower. Same with my dishwasher. But we're talking 15M vehicles in CA alone. I don't think the current grid there can handle anything close to this.

What kind of amperage does your Tesla draw while charging?

With a standard 220v 14-30 outlet (electric dryer style), it draws 32 amps. Some of the more expensive models can draw 40 amps with a Tesla add-on. And if you go to one of their SuperCharger stations, the amps are really high, but idk the exact figures.

That's a pretty hefty draw. You're right then, at some point it's a valid question as to whether it would strain the power grid to carry the additional load of millions of electric vehicles charging. On the plus side, if the majority of charging happens at night, when the grid would have fewer competing uses than during the day.

Changing subjects a bit, I always thought the Tesla Wall was a great idea, but I haven't heard about whether it has been a hit or not. I'm speaking of the whole house battery wall that allows you to recharge at night at lower cost and then feed your house all day.

Some call it ‘The Pluggening.’

https://www.wired.com/story/electric-ca ... tric-grid/

There will be about 15 billion dollars in forced Tesla stock sales when tesla enters the s&p 500 , from all the extended index funds who hold everything but the stocks in the S&p.

They have to dump Tesla by design as they can not hold any s&p stocks .

Tesla actually may put a drag on S&p index funds since Tesla now has to get bought at very high prices while stocks getting booted get sold at very low prices ....

The Tesla deal may actually hurt the s&p by about .30%

Total market funds may be a better choice since ipo’s get added immediately unlike the s&p which has to buy them at top prices.

Since many of us have big tax implications selling our s&p 500 funds in taxable accounts and buying a total market fund there is a simple solution

For every 5 bucks one has in an s&p fund if you buy 1 dollar in an extended market fund then in effect you created a total market fund

Typically, when a stock is added to the S&P they tend to run up in the days prior to the addition, and then tend to underperform for a year or two after inclusion. There's just simply nobody left to buy. Anybody with a TSLA position, the coming weeks are the time to think about selling or at least severely trimming the position, imo.