A particular Tesla investor has revealed that he is in humble awe as well as wonder after his stocks initially went from $5.94 up to $599.04 which was around 100x its value! The investor revealed his first purchase was back in August 2012.
Tesla stock predictions
According to a certain thread by Dave Lee @heydave7, who has reportedly been a believer of Tesla, he was able to grow almost 100x the original value of his investments. He revealed that when he first invested in TSLA stock, he expected it to grow 10x which meant from $3b to the $40b market cap. This was due to the CEO Compensation Plan previously revealed to investors.
He stated his amazement that the Tesla stock was able to grow around 100x in just about 8 years through purely holding just common stock. The investor even released a YouTube video back in 2012 regarding his conviction to purchase the TSLA stock at $30 or just $6 per share post-split.
Is Tesla profitable yet?
The investor also shared a particular blog about his real-time thoughts as well as analysis from that long time period. He then divided his TSLA shares into two different groups.
The first group were shares that he purchased from Aug 2012 up to March 2013. He then stated that 80% of all of his liquid assets were then poured directly into TSLA during this time. He stated that he was saving the 20% of his own liquid assets for a particular down payment on a new house. The second was he spent the remaining 20% of his liquid assets on the house down payment and decided to buy TSLA options back in May 9, 2013 after the Q1 earnings.
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Investor had to sell TSLA shares
The investor reportedly sold a few stocks back in 2014 and 2015 when the options had expired. He reportedly had to take a particular margin loan in order to do that. This was where he transferred to the asset-backed line of credit. The investor then reportedly took 2-3 years in order to pay off the given loan.
The 2nd group was reportedly kept with much looser hands since they are not super long-term in comparison to his 1st group of shares. At a particular point, the 2nd group of shares then equaled 35% of his total shares. Currently, they are reported to make up about 20% of his Tesla shares.
The investor then clarified that he had no interest in bragging but rather wished to share the story in order to help people venture into unconventional and outside--the-box type of thinking and approaches. The investor said that that approach should not just be limited to investing but should be applied to life in general. He ended with a quote that most of the time, the majority of the "herd isn't right." He then clarified that what happened with Tesla was the result of a high risk but high reward investment move.
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This article is owned by Tech Times
Written by Urian Buenconsejo
