Author Topic: Lessons from riding the hot stock train  (Read 1837 times)

Travis

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Lessons from riding the hot stock train
« on: January 01, 2023, 06:31:53 PM »
So there's a Twitter account that reports Tesla news every day. Apparently he manages his 70 year old father's retirement account which appeared to be majority Tesla. He went all cash at the bottom of the market last week on his father's account.

He doesn't go into detail why he wasn't diversified nor why he cashed out except to say it was a panic sell. There are a number of lessons to learn here.

1. Don't trust somebody else to manage your money - even family.
2. Don't tie up your net worth in a single stock.
3. Have a plan and DON'T PANIC.
4. Learn when enough is enough. He said he locked in a $10 million loss. This presumes he had a lot more than $10 million in the market 12 months ago. And still riding on a single stock?! Everybody on this forum could live like a king on a 1% withdrawal on that.


https://twitter.com/teslaeconomist/status/1608693696714919936

GilesMM

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Re: Lessons from riding the hot stock train
« Reply #1 on: January 02, 2023, 05:50:19 AM »
5.  Be careful owning individual stocks as opposed to index funds.

moof

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Re: Lessons from riding the hot stock train
« Reply #2 on: January 04, 2023, 09:30:03 PM »
The first rule of money:  Donít mix money and family, you may lose both.
Second rule of money:  Donít mix money and friends, you may lose both.