2/ Regarding A. I'm long $TSLA, believe it isn't a bubble and the naysayers are shortsighted and wrong.
Only time will tell about A, but B we already know - $TSLA joined at an ATH of $695 then fell - but it's now at $763, so it ADDED value, not detracted.
BUT..
Only time will tell about A, but B we already know - $TSLA joined at an ATH of $695 then fell - but it's now at $763, so it ADDED value, not detracted.
BUT..
3/ But the question of whether $TSLA brings risk to the S&P is WRONG by itself. The whole idea of an INDEX FUND like S&P500 is to be passive, and it's THE ACTIVE MANAGER DECISIONS that introduce risk
Being profitable and large TSLA should have been added ON Q2 EARNINGS.
..
Being profitable and large TSLA should have been added ON Q2 EARNINGS.
..
4/ Before we analyze implications, consider this:
DataTrek Research estimates that if on Jan 1 2020 an investor had put $5 of every $100 invested in an S&P 500 ETF into $TSLA, their return by Dec 11 2020 would've increased by roughly 31%!
(more by EOY)
cnbc.com/video/2020/12/…
DataTrek Research estimates that if on Jan 1 2020 an investor had put $5 of every $100 invested in an S&P 500 ETF into $TSLA, their return by Dec 11 2020 would've increased by roughly 31%!
(more by EOY)
cnbc.com/video/2020/12/…
5/ But that's hypothetical bc $TSLA didn't qualify for S&P at Jan 2020, and 5% is more than its share today.
Tesla DID qualify on Q2 earnings but was admitted after Q3. Comparing 12/21 price ($695) to 9/21 price ($449) is wrong bc by 9/21 price fell after news of not including.
Tesla DID qualify on Q2 earnings but was admitted after Q3. Comparing 12/21 price ($695) to 9/21 price ($449) is wrong bc by 9/21 price fell after news of not including.
6/ So let's take compare the last day b4 the bad news and compare with 3months forward. 9/4 price was $418, while 11/30 price was $599
I other words, S&P Managers deciding to postpone inclusion despite Tesla meeting requirements, robbed Granny of ~43% rise on every $TSLA dollar
I other words, S&P Managers deciding to postpone inclusion despite Tesla meeting requirements, robbed Granny of ~43% rise on every $TSLA dollar
7/ Percentages are misleading. Let's assume just the $181 diff - as if buying $TSLA at $514 instead of $695, then reaping that $181 rise.
at $695 $TSLA was 1.65% of S&P, so at $514 it would've been 1.22% of S&P size, and 1.22% of the shares were robbed of 35% gain
at $695 $TSLA was 1.65% of S&P, so at $514 it would've been 1.22% of S&P size, and 1.22% of the shares were robbed of 35% gain
8/ Grandma was robbed by the ACTIVE decision of delaying inclusion. But what next?
Since inclusion, $TSLA rose 10% ON RESULTS, NOT VOLATILITY, in <10 trading days - so S&P gained from inclusion
By me ($TSLA LONG, not investment advice) the future looks even more promising!
Since inclusion, $TSLA rose 10% ON RESULTS, NOT VOLATILITY, in <10 trading days - so S&P gained from inclusion
By me ($TSLA LONG, not investment advice) the future looks even more promising!
9/ S&P should be a passive index and act like one
Manager intervention robbed fund holders of profits, but now that fixed $TSLA is set to be one of the engines pulling the index upwards
MSM POV has shifted accordingly - can't wait to see 01/2021's growth engines do their thing
Manager intervention robbed fund holders of profits, but now that fixed $TSLA is set to be one of the engines pulling the index upwards
MSM POV has shifted accordingly - can't wait to see 01/2021's growth engines do their thing
10/ PS While writing this thread shifted from just charting the "what if"s into a somewhat ideological rant. Sorry, lol, but realizing how the "robbing granny" argument was in fact what robbed grannies, gramps and other honest hardworking people - that got to me. Chill now!
11/ @jpr007 @garyblack00 @stekkerauto @TilmanWinkler @stevenmarkryan @heydave7 @Kristennetten @28delayslater @Cosmicstrenght3 @KaleyGoode @TeslaBest @EvaFoxU @wendishen99 @billhuang688 @TeslaPodcast @LimitingThe @elonmusk
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