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Revealing my stock portfolio (Stock #1)

April 17, 2024
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I'll be sharing my stock portfolio holdings over the next few weeks. Here's my 1st reveal.

Introduction:

I started investing when I was in Grade 7, when I asked my dad How can I buy Gold? I wanted to put my money to work. He told me how investing in the stock market works & why he thinks it is better than gold.

Since then, I fell in love with investing.

During my schooling years, I would hide my phone from teachers and just read about investing & companies. 

In grade 9, after showing my parents my returns, they entrusted me with their pension fund.

I know, it sounds crazy. 
But fortunately, their portfolio grew 650%+ in just 5 years.

That was thanks to investments that I made in Nvidia at $9 dollar (Split-adjusted), Amazon, Tesla & a few other that performed really well.

Ive also made mistakes, like investing in Steinhoff.

We need to learn from both our failures & success.

We just need to win more than we lose.

Ive always had a preference of high growth stocks, I will explain why in a article soon.

Heres my 1st stock portfolio reveal:

Why Tesla?

Since I started writing on FinMeUp in Feb 2020, when Tesla was just around $92 a share (Split-adjusted), it has more than 10X, I wrote 4 buy stock picks on Tesla since then. So, Ive been bullish on Tesla the past few years for the same reasons I am today.

I did take some profits recently at around $1100 a share, as posted on my Twitter. (@HiggoVan)
 

Even after that, Tesla is still a large portion of my portfolio.

Heres Why

  1. Exponential scale taking place (See attached photo)
  2. Billions in sales, with 0 advertising = Strong brand - Tesla has one of the strongest brands in the world, thanks to Elon Musk. Even kids will tell you they want a Tesla when they grow older. 
  3. FSD becoming closer to a reality- Sometimes, we limit our own minds to what is possible in 10 years time. Self-driving vehicles will DEFINITELY happen at scale in my opinion. Why? Well, its more convenient, much safer (The car has eyes at all angles, we only have 2) & can even help prevent traffic if done at mass scale. Tesla is the leader in this space as well. They have millions & millions of data, which competitors do not really have. This could be a really high margin business.
  4. Tesla Insurance will also contribute a lot to future earnings.
  5. Tesla energy- Could be bigger than Tesla automotive according to Elon.
  6. Innovation- Constant innovation with top of the class employees will accelerate Teslas movement and assist them to maintain a competitive advantage.
  7. Leadership- Elon Musk is the most followed entrepreneur of this century (probably). Why would you bet against him? He has shown years if incredible execution.
  8. Tesla bots & other roadmap ideas- Tesla is not just a car company. Fact! Even though the automotive business makes almost all of the revenue at the moment, this is likely to change in 5-10 years time. Tesla is all about your timeframe.
  9. Demand > Supply- I love business where demand exceeds supply. That is a sign of a strong brand/needed product. Teslas supply is catching up. With various new Gigafactories coming online, supply will catch up to the ever increasing demand.
  10. Data collected (Play on AI)- Tesla is also a play on AI. They have some of the smartest AI engineers, most data collected on roads & a roadmap that allows for innovation in AI.
  11. Strong community behind Tesla- Theres a massive retail investor community behind Tesla. Every video that a YouTube maked about Tesla, is advertising for the actualy business, as well as attracting more investors. 
  12. Growth NOT slowing- Tesla is not slowing down, in fact, growth is exponentially scaling. Revenues grew 87% in Q1 Year-over-Year. That is crazy for a company Teslas size.
  13. Best margins in vehicle industry- In Q1, Tesla reached automotive margins of 32.9%!!! Name me another auto business that can achieve that.
  14. What IF- What if all the crazy ideas of what Tesla could be come does actually happen?
  15. Competition- According to clickbait articles, Tesla has close competitors in the EV space since 2019. Im still waiting to see that competition.
     

Risks

As with all companies, there are always risks. That is why diversification is key.

  • Valuation- In traditional sense, Tesla is Overvalued. I am not buying more at these levels, but also NOT selling any more shares. This is now a 10 year HODL investment.
  • Supply chain- All companies that deals with products are facing supply chain issues. For example Semiconductors & Rate Earth Metals. Tesla managaes this well currently, but it still remains a challenge.
  • Inflation- Tesla stated that they are seeing inflation in various aspects of Teslas business, that is why they also increased the prices of a Tesla car. (Still, there is massive demand)
  • China factory shutdown- Due to Shangai factory shutdown, Tesla lost about a months production in China, which will be seen in Q2 earnings, but they are still optimistic for this years delivies.

Conclusion

Tesla has been one of my diamond the past 3 years. I have sold some shares to fund other investments, but my remaining shares I will be holding for the next 10 years.

Tesla carries risk, but also excitement and a lot of potential. Its a business that is adding immense value to society and an amazing vision.
 

Over the next few days & weeks Ill be sharing all my JSE, US & Crypto Investments. Stay tuned.

 

(Disclaimer: This is not financial advice. Alwasy do your own due diligence. Everything stated is objective and an opinion.)

 


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