Do you have a favorite “fun” stock you have purchased or are considering? By “fun” I mean risky and likely volatile, but if it hits, pay off could be excellent. My rule of gambling (and that’s what this is) is, never invest more than you’re willing and able to lose.
You (obviously) don’t want to lose it, but it will not having you look to jump out a window should you lose it. Others take a different approach/attitude, and some times it pays off for them, some times it does not. I’m not an expert enough in such things to invest a large % of my personal value into individual stocks, so I allotted a small % to “fun” investment that if hunch, research, etc pays off, worth the risks and I plan to hold onto it a while.
The company and stock I have been watching intently is Tesla. I feel if any company is going to really make it in this market segment, they are the company. I have been following them a while now it’s clear they are in it for the long hall. Some feel their stock is currently over valued (seems to run $240-$260 a share) and per usual, hindsight is 20/20 as I kick myself for not grabbing it when it was sub $200.
I bought some shares of Google in ~2006 for $125 a share. I got all excited and sold them at $180 or so - still don’t regret that decision in the least, but that was an amusing lark that paid off better than I expected even selling of that prematurely.
I bought some Anadarko (APC) in 2009, and held it until the price doubled. Then I sold. It kept going up. That was not only the most lucrative investment I’ve ever made, it’s also “the one that got away”. That’s OK- I can’t complain about doubling my money.
I’ve been watching the valuation in case this latest market blip makes it a good time to get back in. It’s a high beta stock for a company with fairly solid fundamentals.
Tesla’s Debt-to-Equity frightens my wallet. But it does have enough twinkle 'n sparkle to make you some l00t. Don’t get greedy…looks like you’ve already made some money BTFD!
Much of their debt is due to continued re investment in infrastructure and growth, such as making their own batteries for their cars vs outsourcing to Panasonic. They do have a big war chest and no lack of people buying their cars at least. I’m not an expert here, and I followed my investing rules per the OP. I’m seeing this a long term thing and if they are that company that “makes it” in the market, a good investment. If they don’t well…
In 1985, the largest US company was IBM, the second largest was Exxon.
In 2010, the largest US company was Apple, the second largest was Exxon-Mobil.
My point is that technology and other things come and go but even with Tesla out there…there is no oil alternative on the horizon and oil WILL come back.
Once they figured out that they could sell a barrel of crude at over 100 bucks and people still did not get rid of their cars…it will not stay this low forever.
I looked at the latest offerings from Taser at the CT SWAT challenge. As you’d expect, their getting big accounts on body cams in particular. They might be a smart stock purchase all things considered.
Any gasoline alternatives are basically just toys for wealthy people. The average annual salary of the Chevy Volt buyer is 175 grand and the Tesla starts at around 75-80 grand. We are a VERY long ways off from electric cars or any gasoline alternative vehicles being mainstream or even close to being affordable or abundant. Tesla is still in deep debt.
Oil is NOT going away and I can pretty much guarantee you it WILL go back up. Buy those stocks now because they won’t be down for long.
Since we have a major national election next year, wanna bet that gun stocks like Ruger, S&W and maybe Colt will go up as well? They shot up during the Obama 08 election and after Sandy Hook but went back down. If it looks like we will be getting Hillary…you can damn sure bet the guns will go flying off shelves again.
Solar powered? A solar powered charging station perhaps.
It’s not going away in our life time, but the alternative energy and alternative transportation industry is here to stay. That’s a good thing for both the economy and national security. What % electric and or hybrid cars will make up in the coming years is speculation dependent on factors we can only make assumptions on. The major car companies are rolling out more electric and or hybrids focused on the middle class income buyers and they are doing well. They are also no longer little econo boxes for hippies and feel good wealthy types but “real” cars. For example, GF just got a Ford C Max and it’s a great car. I am blown away by this car for the $$$. The tech has matured far faster and better than I had thought. Every time I drive in it I think “this is a hybrid?!”
Me, I got a Ford Explorer (my first US car BTW) to offset her gas mileage
Per the OP, it’s about “fun” stock you have confidence in growing over time, but not so much you’d be willing to (read stupid enough) sink a large % of your $$ you can’t live without should it tank. I can see some gun industry stock in that category with expected volatility no doubt.
I am so not a gambler usually. But about 7-8 years ago my stock market addicted brother made a convincing case to go all in on a REIT in bancruptcy. I used an underperforming Roth IRA at Vanguard to buy 8000 shares of GGP @ an average of .80 per. Now it is over $25. Sold it all for some higher dividend REITS that makes a big difference in retirement. And zero taxes via the Roth! The ride would be even more fun if I had not squandered a bunch on a new car and classic truck.
At one time my brother had over 50,000 shares bought at .40-60. Refused to put any in a Roth - “Too illiquid”. Lost it all day trading and living large and had to borrow to pay the taxes. True gambler him.
Re Tesla, I think they could be a huge player if they come out with a down-scale line. Maybe some light utility models to compete with the little Ford Transit.
Agree…this. My favorites that I currently own are domestic driller EOG, a tiny oil services company that specializes in the frackers FTK, and a company that is in the energy logistics business, ETP.
Yes it appears that hybrids are here to stay and somewhat affordable and other fuel alternatives like CNG or some sort of fuel cell might come around. But the days when an all electric car that can go realistic miles between charging and is affordable (under 40 grand) is still a long ways off.
Besides, all of those alternative cars are made with lots of plastic and you need oil to make plastic.
