Bryan Werlemann owns over 45,000 $TSLA shares he bought over the years.
They're currently worth over...
$45 Million!
I just listened to this 1 hour interview of @heydave7 with @womperoom
There are many unconventional investing lessons here.
Here's 10 of my big takeaways:
They're currently worth over...
$45 Million!
I just listened to this 1 hour interview of @heydave7 with @womperoom
There are many unconventional investing lessons here.
Here's 10 of my big takeaways:
1. Average up. Don't anchor to past price
Bryan didn't anchor to his original cost.
He kept adding to TSLA, even up till now.
It shows that the old adage of "buy low sell high" is inaccurate.
The better way would be to buy high, and keep averaging up as the business executes.
Bryan didn't anchor to his original cost.
He kept adding to TSLA, even up till now.
It shows that the old adage of "buy low sell high" is inaccurate.
The better way would be to buy high, and keep averaging up as the business executes.
2. Know the management
By chance, Bryan got to spend personal time with Elon and ask him questions.
That helped deepen his conviction in $TSLA.
It helped him to hold through drawdowns.
Even add more.
But what if you can't meet management 1-1 like Bryan did?
(continued)...
By chance, Bryan got to spend personal time with Elon and ask him questions.
That helped deepen his conviction in $TSLA.
It helped him to hold through drawdowns.
Even add more.
But what if you can't meet management 1-1 like Bryan did?
(continued)...
2b. You must find other ways to understand the CEO and management...
Through interviews or podcasts.
This is crucial for investors with concentrated portfolios.
We must understand what drives the company founder.
Because their decisions affect our wealth directly.
Through interviews or podcasts.
This is crucial for investors with concentrated portfolios.
We must understand what drives the company founder.
Because their decisions affect our wealth directly.
3. Have an active income stream helps
Bryan mentions having a day job gave him peace of mind even when TSLA corrected.
Because he didn't need to worry about survival.
He still had income coming in.
This gave him the stomach to hold through volatility and even keep adding up.
Bryan mentions having a day job gave him peace of mind even when TSLA corrected.
Because he didn't need to worry about survival.
He still had income coming in.
This gave him the stomach to hold through volatility and even keep adding up.
3b. I resonate a lot of with this.
Having crossed 7-figures at age 29, I still chose to keep my 9-5 job.
Mainly because I still enjoyed working and believe in the value of "meaningful suffering".
That allowed me to keep accumulating capital and continue to add to my stocks.
Having crossed 7-figures at age 29, I still chose to keep my 9-5 job.
Mainly because I still enjoyed working and believe in the value of "meaningful suffering".
That allowed me to keep accumulating capital and continue to add to my stocks.
4. Buys at highs
This is counter intuitive.
Bryan buys more shares of TSLA when it's rising.
Because he finds it mentally easier.
It's harder to buy when the price is falling.
It's a reminder that valuation (while crucial) matters less when you have a long time frame.
This is counter intuitive.
Bryan buys more shares of TSLA when it's rising.
Because he finds it mentally easier.
It's harder to buy when the price is falling.
It's a reminder that valuation (while crucial) matters less when you have a long time frame.
5. Sometimes your best stocks are what you already own.
Bryan couldn't find other companies as good as TSLA.
So he just kept buying more of it.
Though he was already holding an outsized position, he kept averaging up.
You don't have to diversify for the sake of diversifying.
Bryan couldn't find other companies as good as TSLA.
So he just kept buying more of it.
Though he was already holding an outsized position, he kept averaging up.
You don't have to diversify for the sake of diversifying.
6. Hold through drawdowns by relying on your huge profit cushion
Dave asked Bryan how he managed to hold through drawdowns?
Bryan's reply was unconventional:
He looks at his huge profit cushion to mentally ease himself.
It's a good way to think...
Dave asked Bryan how he managed to hold through drawdowns?
Bryan's reply was unconventional:
He looks at his huge profit cushion to mentally ease himself.
It's a good way to think...
6b. Because the average investor looks at their profit cushion as a signal to sell and exit.
But Bryan does it the opposite way.
He looks at his profit cushion as a signal to hold on and even add more.
Lesson:
Good investors all think and behave differently.
But Bryan does it the opposite way.
He looks at his profit cushion as a signal to hold on and even add more.
Lesson:
Good investors all think and behave differently.
7. Helps to have experience of the product
Bryan's conviction isn't just based on blind faith.
He has experience with driving a Tesla car in the early days.
He understood what it felt like "driving on sunshine".
It gave him confidence of the product.
Bryan's conviction isn't just based on blind faith.
He has experience with driving a Tesla car in the early days.
He understood what it felt like "driving on sunshine".
It gave him confidence of the product.
7b. This is crucial for concentrated portfolios.
If you want to hold large positions, it helps to have some experience with the product.
You know how useful it is...
You are clear of the value it provides.
So you are able to hold on tight during wild swings.
If you want to hold large positions, it helps to have some experience with the product.
You know how useful it is...
You are clear of the value it provides.
So you are able to hold on tight during wild swings.
8. Separate mental compartment for his investments
In the beginning, Bryan saw his investment in $TSLA as money he was willing to lose.
This helped him place it into a different mental compartment.
If you're investing $$ you need for survival, you behave more short term.
In the beginning, Bryan saw his investment in $TSLA as money he was willing to lose.
This helped him place it into a different mental compartment.
If you're investing $$ you need for survival, you behave more short term.
9. He saw his money invested as supporting a mission
While TSLA has made him wealthy beyond measure...
It wasn't only a way to get rich.
In this case, the mission was to provide clean energy for people.
He bought into its vision of a better world.
While TSLA has made him wealthy beyond measure...
It wasn't only a way to get rich.
In this case, the mission was to provide clean energy for people.
He bought into its vision of a better world.
10. He didn't sell any shares.
You know what's amazing?
Bryan didn't sell a share of TSLA since buying it.
Given his profits, this is remarkable.
It takes discipline to do this.
He didn't feel tempted to take some off the table.
The real wealth is made in the holding.
You know what's amazing?
Bryan didn't sell a share of TSLA since buying it.
Given his profits, this is remarkable.
It takes discipline to do this.
He didn't feel tempted to take some off the table.
The real wealth is made in the holding.
That's it!
All these great insights come from Bryan Werlemann @womperoom
Also thank you to @heydave7 for always having amazing guests and asking sharp questions.
Dave is a great listener (and interviewer).
You can watch the full video here:
All these great insights come from Bryan Werlemann @womperoom
Also thank you to @heydave7 for always having amazing guests and asking sharp questions.
Dave is a great listener (and interviewer).
You can watch the full video here:
Recap of the 10 lessons:
1. Average up. Don't price anchor
2. Know management
3. Have active income
4. Buy at highs
5. Buy more of what you own
6. Use your profit cushion
7. Experience the product
8. Mental compartment
9. Believe in the vision
10. Don't sell
1. Average up. Don't price anchor
2. Know management
3. Have active income
4. Buy at highs
5. Buy more of what you own
6. Use your profit cushion
7. Experience the product
8. Mental compartment
9. Believe in the vision
10. Don't sell
If you like this, follow me at @heymaxkoh
I share my journey on:
- How I attained financial freedom before age 30
- My investing strategies and principles
- How I research companies and stocks
Also head back up to retweet this to refer back in future
I share my journey on:
- How I attained financial freedom before age 30
- My investing strategies and principles
- How I research companies and stocks
Also head back up to retweet this to refer back in future
https://twitter.com/heymaxkoh/status/1457724124877320198?s=20
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