I personally think market cap weighting is less than ideal
Uh... buy Tesla and Apple... because it is always a good idea to overweight the hottest new tech stocks that everyone is getting crazy about? That worked so well in 1997-2000, let's all do it again.
Another one would be: "Do I want to use this product?", sort of assuming that if oneself manages to get hooked, others might, too. As such, I would have had invested in Amazon, Google, Facebook and Alibaba the second it became possible, if I had had the spare money then.
Shouldn't a mustachian pick companies that they DON'T use?I wouldn't want to own a company that relied on the sort of customers who take a pride in not spending any money !
Quote from: nobodyspecial on December 26, 2015, 05:47:23 PMShouldn't a mustachian pick companies that they DON'T use?I wouldn't want to own a company that relied on the sort of customers who take a pride in not spending any money !Counter argument: If they're selling things that are staples, so important even Mustachians are buying, they might be a good investment. Luxury items Mustachians don't buy could be good in an up economy, but suffer in a down one, versus a company like the above that should thrive in either.
I would not invest in Tesla. They're currently burning cash while they develop their Gigafactory and the Model 3. They have a consumer confidence issue because they were late bringing out the Moddle X and because of the longterm value issues brought up by consumer reports. They're going to go down before they go up--and there's no guarantee they go up.
Quote from: browneyedgirl on December 29, 2015, 07:01:56 PMI would not invest in Tesla. They're currently burning cash while they develop their Gigafactory and the Model 3. They have a consumer confidence issue because they were late bringing out the Moddle X and because of the longterm value issues brought up by consumer reports. They're going to go down before they go up--and there's no guarantee they go up.I disagree with pretty much each of your individual points (in order: they're investing in their infrastructure and R&D for the future, that's a good thing, they're still way ahead of the competition, and everyone who owns one loves them), but I also don't think I know better than the market, or can see the future. I think they're in a great position to make * loads of money, but that doesn't also mean their stock isn't fairly priced.