Tesla stock in the S&P 500

[LimitedTimeOnly]

https://www.fool.com/investing/2020/11/16/tesla-stock-jumps-on-news-it-will-join-the-sp-500/

I happen to think that Tesla stock is terribly over-valued and would never buy it. Except that now my retirement S&P 500 index funds will include the stock.

Dang, this makes me worried that when the Tesla valuation comes back to reality I'll take a hit, conflicting with my strong desire to be able to retire someday.

[MUSASHI66]

My wife has made an 80% return on stocks this year on an initial $12000 investment, researching and listening to Motley Fool. She won’t touch Tesla with a 10ft stick.

[Chariotoflove]

I’d be worried too.

[Snakesm13]

Currently up 64% now 71% 79% on my Tesla holdings... but I'm no dummy, my stop loss is in place for a reason. It's been some ride.

[Rusty Vandura]

@limitedtimeonly I yuuuge ROI on a small Tesla investment the week they went public. Cashed in a chunk of it right before the pandemic. It's the only stock I've ever bought. I'm not suggesting that buying now is a great idea, but hey: The Almighty Market, right?

[LooseonExit]

FXAIX/FNILX, VOO/VFIAX/VFINX, SPY, etc - the only safe way to own Tesla... I did very good on some oil stocks earlier this year, but haven't dabbled since my EFTPS tax payment lol. Tesla always looks intriguing, but just can't do it, stop loss or not.

The S&P500 survived Yahoo, so I'm sure it'll survive TSLA. Maybe. Dammit 2020!

[BicycleBuck]

@limitedtimeonly We have long-term investments for retirement and short-term investments for college funds. My financial advisor is telling us to get cash out now for our expected tuition and school expenses over the next year. They're expecting a big downturn in the market in January.

[LimitedTimeOnly]

@bicyclebuck If only I was close enough to retirement to treat any of my savings as a short-term investment.

I still remember lurking on the Motley Fool forums decades ago and taking to heart the idea of having a ladder of Treasury bonds for short-term funds needed in the next few years of retirement. Can't do that real well right now with those returns.

[rctothefuture]

@musashi66 The Motley Fool is pretty good, he can be a little conservative but you want that when playing with smaller investments.

[ToniCipriani]

@musashi66 said in Tesla stock in the S&P 500:

Motley Fool

These guys are just marginally more reliable than /r/wallstreetbets...

Everything they post sound like stock manipulation.

[BicycleBuck]

@limitedtimeonly I hear you! I was listening to a guy talk about long-term investments and he said that recent comparisons showed index funds outperform most aggressively managed investments over the long haul. He made comparisons to how the MIT and Stanford endowments are being managed. We are still a long way from retirement, so I've put most of my investments into long-term index funds and they've shown really good returns over the last few years. The shorter-term funds were higher growth so we could develop a decent fund for our college-bound kids.

[MUSASHI66]

@tonicipriani My wife follows them and she is up 80% since she started doing that. Luck, market conditions, or them knowing their shit? No clue. I don't play with stocks.