Just fyi, the $100k of investable savings/year was just an example of an extremely high earner/saver. Wasn't meant to be an objective minimum of what a high earner/saver is. That is more subjective and depends on a lot of things like your anticipated monthly expenses if/when not working, how much longer you are able to work, and on other factors. So it's more like a sliding scale, and I was just using an extreme example. (Point being, the more replenishable annual investable savings you have, the more you can afford to make mistakes). Safe approach vs riskier approach is also a sliding scale and can be mixed as I share in the video. Anyway, lots of these thoughts are a work in progress. Glad to get a discussion started.
Agree, you said "ideal situation" NOT "typical situation" you had not gone full "valley girl"! For people starting out save for downpayment on house and invest in 401(K). Agree, keep your living expenses under control especially transportation expenses (such as a car) and don't take on too large a home mortgage (risky and may need funds for other investments). Jump to high income job may come from college, but resaerch and plan carefully. Keep an open mind for unexpected career and/or travel opportunities.
The biggest paradox of age/wise investing is that in your 20's you have the longest time horizon, so anyone prioritizing the long term realizes you ought to be putting some money to work with investments. However, it's the first time most people are making any substantial amount of money. It's easy to spend it on standard living expenses and consume the rest for "desire fulfilment," and upgrades to their lifestyle where possible.
Thanks, Dave. I'm almost 70, approaching retirement, and have been a patient, disciplined Boglehead index investor since early adulthood. Two years ago, influenced by people like you, I broke with that history, and put half of my stock market holdings into Tesla. I had already missed the big move in the stock, but even so, Tesla grew so rapidly that it has become 75% of my stock portfolio. I had deliberately reserved enough money in index funds so that even if my Tesla went to zero, I would still have plenty of money to pay my expenses, while growing my portfolio, even as I drew upon it. At my age, this seemed prudent. If my conviction in Tesla had been incorrect, and the company had gone bankrupt, going all-in would have ruined me. With the aid of hindsight, having gone all-in would have earned me a lot of money, but as they say, hindsight is always 20/20. I took a great deal of risk, investing half of my stock dollars in Tesla, but I also "played it safe", reserving half of my stock in index funds. It seemed like a balanced mix of prudence and daring at the time, and I'm happy with where I sit now. I could easily have $60,000,000 by the time I die, if Tesla does as well as we enthusiasts believe it will. That is far more than I can use, and far more than my children can use. So I think I'll sell a little Tesla every year, and reinvest it in my index funds, to roughly double them in five years. Then, there will be no doubt that I have plenty to live on, even if the stock market crashes. Even if that modest rebalancing reduces my estate from $60m to $40m, so what? Tesla has freed me from most financial worry, and has enabled me to set up college accounts for my 20 nieces and nephews. It feels good to share my good fortune with those I love. I have the children invested mostly in Tesla, of course. They are excited to watch the ups and downs of the stock, and they are proud to be helping change the world. One niece, who is five, was amazed recently with her first ride in a Tesla. Her mother told her "You know, honey, your money helped build this beautiful car." The girl's eyes went wide with astonishment. "Really?" she asked. "Yes, really." her mom told her.
@@michelemichele6387 How sweet of you to say this. I am lucky to have these children to share my life, and my good fortune. It astonishes me to think of what the power of compounding will do for them. They each have 11 shares of Tesla, plus a little Palantir, each account worth a bit over $10,000 today. With 16 years to compound (until the five year-old turns 21), assuming a growth rate of only 15%, $10,000 will grow to about $94,000. I am sure that Tesla will grow much faster than 15%, too.
Before I got into the market I put money into an index fund. It was only later that I found out that this fund was just the top 5 stocks and I was paying a fee. Now I'm all in Tesla.
Hey love the portfolio. You mind me asking did u buy into tesla early or not. I'm just wondering as I'm thinking of increasing my tesla allocation but worried either a full on crash that takes 8 years for recovery or tesla mess up fsd, or elon dies lol. Anyway like the allocation
Exactly, especially mutual funds are very expensive. These are even worse than ETFs in charging fees. And even for the simple index ETFs, there is quite in difference between managers for e.g. QQQ.
I think I’m going against most advice I see ou there. I’m 44 and only started investing in the last year. I have low income and only have about $5500 invested at the moment. I don’t diversify and I’m all in on Tesla stock. I have a family and a big mortgage that will see me working into my 70s if I live that long. I decided to take this high risk approach because I don’t have the time or the money to invest in the safe approach. I’m putting whatever I can afford into Tesla stock because I’ve done my research on that one company and believe it’s the safest high risk investment I can make. If I was to lose all the money then yes I’d be devastated but at the same time I’m prepared to take that risk if it helps me to retire a little earlier. Appreciate this video Dave. Thank you.
It's time to sell that house, maybe go to a different state and get a cheap mortgage interest rate now before they go up on a smaller house . It seems you are living beyond your means. You need to save now for income when you retire and medical conditions. I retired at age 46 (now 53).... not because I am wealthy or had investments. I just worked a hard contractor job, saved and lived below my means, then bought my house for cash.
Keep buying at every paycheque. In a couple of years you will be smiling and still keeping up a really great habit. You only need to 10x twice over the course of 2 decades with your entire wealth if your wealth is 100k. Tsla is half the equation. It might even become the second half the decade after.
@@tioriccopuravidatrader121 I am not living beyond my means at all. All my bills get paid, my family have food and a roof over their heads. So you are suggesting to “save” money? As in have money sitting in a bank account being devalued every year from inflation yeah?
Grateful to you Dave. I constantly share your teachings to our local high school and college students interested in investments. You are a true public servant. 🙏😇
I think there is another group: low income now, high risk investing, because safe future. I'm 25, biomedical PhD student, but 99% assets are in high growth stocks as I have a safe job for the next years (cant get kicked out) + high income once I graduate (biotech industry).
There's risk in your future income as well, like getting into any kind of long term illness. I think spending (minimally) on disability income and critical illness insurance would hedge that risk.
This category defintely exists. Such industries and graduates include, medicine, law, engineering and I.T. low income now (due to studies and the first year to 3 years of work). But generally after that 3rd year, those BIG BUCKS roll in deep, because by then, let's use a lawyer for example. In my country, you'd graduate as a lawyer, for the first 3 years you have to be supervised by your principle lawyer (law firm boss lawyer). After you've 3 years supervised and approved of your certificate, you can now legally open up your own firm/practice. That's when high 6 figures to 7 figures start to accumulate. Same thing with medicine if you're a GP, if you have your own practice ;)
A lifetime of personal decisions and outcomes distilled in less than 30 minutes. Look after yourself and your family first then, if all is in order, expand out and influence where you can. Everyone has to look after themselves and try not to become a burden. Great stuff Dave,
100% in on TSLA now. I am so lucky and fortunate to live in a time where I am able to take advantage of the decade where Tesla will make a lot of investors rich.
Outstanding advice. For me, all in 100% Tesla has been the best choice so far and moving forward 5-15 years. Great unbiased information as usual. Thanks, Dave.
Was approaching retirement age with about $200,000 of retirement savings under management. After much research I took control of the funds and went all in on TSLA in early 2019. Now I’m a multi-millionaire looking forward to a comfy retirement. Thanks Elon.
You concerned that your nest egg lost 1/3 since Tesla hit it’s high a few months ago? What if fsd doesn’t pan out or Elon dies etc. you could lose her another 1/3 or much more in a snap.
@@robertvalinsky9804 you’re right I am “down” a million or so. I’m not concerned in the least. The market is obviously rigged and short term investment is risky but the long term TSLA outlook is as close to a sure thing as death. IMHO
Dave, thank you so much for this video. I keep learning from you. This has been the exact Budget strategy for my wife and me as well for the past 10 years. Including putting a large cash investment into Tesla a few years ago and holding onto real estate.
This was very timely advice in this day and age when there is so much financial gurus out there. I like how you present the argument for trusting yourself to evaluate your own unique situation, skill set as well as financial goals before investing.
I started investing at 19 with a 401k, rolled that into a ROTH when i changed jobs years later. I was going to buy my first house and use 10k from the ROTH. I had a total of 40k. The day before i needed to withdraw the 10k one of the stocks I was in crashed and took my account from 40k to 15k. I withdrew the 10k (bought the house) and was left with 5k. That experience sucked so bad I stopped investing and didnt look at the stock market for 18 years. After hearing about Tesla in 2018 i started funding my old account again which had nothing left since i was all in high risk stuff because i didnt care. I jumped in and started buying TESLA. In 2 years I grew my account to over 433k with shares and call options on Tesla thru the split and Snp Inclusion. Im now 50 and basically just getting started investing again. This market will steal your money if your not careful. I can handle risk but definitely have cut back some during the last year of Tech sector getting crushed. The market is one big game of manipulation and you have to trade based on that understanding. I plan to trade stocks as an income source when i "retire" my remodeling business in 10 years or so. Im down big from the all time high because I ignored risk for a few months to long. I am confident that Tesla will help a lot of people gain financial independence if they invest for 10 years. I dump ALL my spare cash into the market (managing risk more now) since my expenses are very low my house has no mortgage
Holy crap 18 years with no investing :( . But hey I’m glad Tesla worked out for you. Hopefully that 400k will be 4 million in the next decade. I’m 24 and I have 40k I’m looking to deploy into Tesla and turn it into ~500k over the next decade 🙏🏻
@@9770G yea 18 years away from the market led me to "investing" in my skills and learning to run a construction business and restore cars on the side. The money I spent on cars, motorcycles, snowmobiles, quads, and parts and tools I couldve already had that 4 million. Live and LEARN. Be careful in this market. Lots of FEAR causing high volatility. "manage" your risk.
@@tabbott429 ya I’m a car guy myself and always dreamed of owning a corvette or charger hellcat when I was 18-22 but once the pandemic cam it totally changed the way I view money and what to do with it. I used to think just saving ur money in a bank account was “smart” but now I realize that really isn’t the case at all 😂
love the content Dave, this one is a gem for sure. You have gone from 500 vids in early January to already 542 videos just 1,5 months later! insane growth! catching escape velocity
Dave this probably one the best videos you made. This is what I was looking for. A guild yo how to approach financial freedom. Not just saying wake up early and work hard but more of a frame work. So many UA-camrs focus on the mechanics, but not the thought process. Thank you so much. If you can would u be able to group your past videos like compounding together so it will be easier to find when new people on your channel. Hardes thing on UA-cam is finding the correlating videos.
You are correct! Everyone's situation dictates a different investment strategy. Personally, I had been retired for several years when I began studying TESLA in 2019. I became convinced that this was a well managed company with a vision, AND demonstrated ability to execute. I was also convinced that the automobile industry was about to be disrupted by the BEV revolution, led by Tesla. We had a diversified portfolio that included mutual funds and even annuities. We had enough to fund our retirement in perpetuity without my personal IRAs. So I converted both my IRAs to TSLA stock, and the rest is history. I am now in the process of converting the traditional IRAs to Roth IRAs where the TSLA stock can grow tax free. Of course, I have to pay taxes on the stock that I convert to Roth IRAs, and I am doing that with proceeds from the sale of some of the mutual funds. Fortunately, we are financially secure enough to take a hit in diversification, as Tesla becomes a larger percentage of our portfolio. Because we are retired, our simple rule is to concentrate on a few stocks like TSLA only if we can continue to live comfortably with the total loss of such stocks. Now TSLA overshadows all our other investments, and we have the happy dilemma of deciding what type of good cause to fund.
VERY level headed. My summary: Get living expenses taken care of with safe assets and job. Then, invest in high growth for compounding possibility. I'm doing exactly that. TSLA, ETHE, and GBTC in Roth IRAs. I'm hoping for 8-12X by the end of 2030 (9 years).
Dave, are you buying anything in this market crash?? Would love to see an update video on your current investment strategy and if you’re buying anything.
Playing it safe gives low returns, so now you introduce the inflation risk. Being all in on Tesla has meant loosing 50% of my money at times, but this has been more than compensated when the stock goes to the moon. It’s the maximum risk path for me.
Charles Unger, who is Warren Buffet’s investment partner, said in an interview that he doesn’t believe in diversification. He said that if you can identify a company with good management and business, then you can just buy in that company.
What if your research and conviction led to buying say Facebook and you just lost 40% of your nestegg in a week. Going all in on one of just a couple stocks is absolutely risky.
Thank Dave for reading on your comment . Like I said , I need to know how to get there and not just theory . Thank you going into more detail . And congratulations again in ellon acknowledge
Just do a combo of both. I have some very high cash-flow companies (like DISCA & MU) but I also own TSLA. I actually think TSLA is very safe at this point though, as its forward P/E has dropped below 90 and will continue dropping as analyst projections increase. My riskiest stock is VYGVF which I doubled-down on at $7/share. Just don't overleverage, and own a few stocks. But don't diversify JUST for the sake of diversification. Only diversify if all opportunities are GREAT. Just my thoughts
I knew a very wealthy American that only invested in Exxon, the logic was, that this company would be the last standing in a worse case scenario. That was a few decades ago obviously. I think Tesla is the Exxon of today.
I’m very new to investing and got caught up in TSLA when it was still around the high $1100s. i’ve managed to get my break even point to around $930. i’ve put in the equivalent of $21k USD but i’ve hit a point where i’m unsure if i should keep adding (i earn the equivalent of 52kUSD/year). i don’t have a house so that’s one thing i’d like to get into as well. sometimes it feels like i’m gambling a bit too much considering my current salary. i’m 35 so i guess i’m not young but not too old either
I sold all my shares at about the same time you bought. TSLA was and still is very over valued. The pain won't end until around 150-250 IMO. You'd be better off buying index funds and holding forever. Don't fall for UA-cam hype channel picks.
Like always simply wonderful David I heard you say power of compound often but how , the dividends from stocks that hard to get to double triple the way you describe thanks
Just watched the entire video with GREAT information! 👍🏼 I did all the calculations for exactly what type of investment strategy is right for my family 👪 ... STILL going ALL IN on TESLA!!! 😆
One thing though: people cannot relate to figures as high as $1 million. Make the same example with $10k or $1k, and a lot more people will be able to relate to that IMHO.
Agree with everything Dave says except his emphasis on "young age". We live typically to 80 yrs or longer. Even at age 40, you still have good 20-30 yrs to invest. For sure, whether u start investing at age 20,30, or 50 I agree that u need to hustle to increase income, lower expenses, and increase assets ( real estate plus stocks). Then the explosive growth opportunity comes after hustling stage of accruing enough free capital. The biggest secret sauce is knowledge, research to find generational opportunities in business or companies (stock) to invest majority of that free capital. Every success story comes in different stages of preparation that snowballs into a gigantic portfolio of assets. Each person path is different and anyone at any age can get started on this path. No age limitations whatsoever.
@55 I lost 90% of my 401K when the NASDAQ collapsed. Through smart/lucky investing, now 75, I have more than before. Helped to go 90% in on Tesla B4 the split. Now 100% in Tesla and hoping to double my wealth soon. Can’t think of a better bet to increase my wealth at this time.
You manage to cover all the factors in a decision matrix in one of the most complicated decision making spheres for people Best all-around summary in 20 minutes I’ve ever seen such that I’m going to write it out to include in the counselling I often give patients in regards to this very stressful part of one’s mental health life..! Money the proxy of survival And so it becomes a topic 90% of the time Thanks Dave
I am 62 and I am all in on Tesla. Thanks to videos like yours and information provided by Tesla, I know a great deal about Tesla. I feel that over the next 5-10 years Tesla will do really well. Tesla's stock price may fluctuate wildly, but the main trend is upwards. I feel that Tesla is far safer than any other investment I could make. Tesla is disrupting major industries, making them all unsafe to invest in. If I diversified, I would just be investing in lessor quality companies or ETFs with a lower return than Tesla will provide. This is not safe, IMO.
I think there's also another level of investing, The pentagon did release a study that said society was likely to collapse within 10 years... the Pentagon that's pretty hard to ignore. That would mean no matter how you're investing no matter how you're saving all of that is going to be gone. Whereas if you invested in say Indoor Vertical hydroponics / aquaponics / land-based salmon farm or even small fishing camp rents loges in the hills somewhere you would have the ability to provide for the people in your family/community irregardless of supply chain stability. Pretty much like the Ultimate Security blanket, that's also an investment that regardless of the situation makes social or monetary profit.
Buy Ford stocks especially into the Mach E. Unlike Tesla, who will not allow you buy parts from auto stores and don't have local dealers to my understanding, Ford has maintenance trained mechanics all over if one needs urgent maintenance or repair. To add, the Ford Mach E is said to be roomier, stronger, drives better in snow and best of all has a battery that holds up well in the cold. These have been issues pointed out by Canadians about the Tesla's shortcomings. Chevy is also moving well with EV but Ford is in the driver seat now including with their EV trucks.
I’m 25 make 70k my approach is fast and concentrated for the most part, my safety net is my 401k which is super safe and boring. I’m probably 30-40% safe 401k and 60-70% TSLA. I guess I should mention I live with parents and save almost all my income. All that being said I don’t see tesla as a risky investment 🤷🏻♂️
Dave much love ❤️ from Australia 🇦🇺 …mate, you really should be writing a book. You have credibility, humility and a very balanced view of the VALUE of money. A very unique and precious basket of values. Do it. 🙂
Good Educational advice. There is quite a difference between the experienced and academic approaches, because experience in Business is almost essential to buying Shares in businesses. It's the difference between Industrial Capitalism and Financial Capitalism, the Shop Floor and the Quant's Instruments.., or Buy and Hold and the Casino, in a spectrum of proportioning.
I view investing in TSLA as investing in a mini ETF that chooses the market leader who dominates or will dominate four huge markets: EVs, renewable energy, autonomous robotaxis, and humanoid robots.
So to summarize it is easy to be "All In" when your sitting 100x in your favorite stock. Wonder how those that went "All In" at $1250 feel about it. Thanks.
This shows how narrow your understanding is. The change in stock price of any company in the short term means absolutely nothing... If Apple or Tesla goes down 2% tomorrow, they're not any better or worse than they were today. If I wouldn't thought like you, I wouldn't have made over 100K in gains in the last 2 years on tesla
@@mateus8676 no it shows you don't realize it's easy to regret failing to purchase a stock AFTER it 10x or 100x. Nobody nows what a stock is going to do. That is why we make educated guesses and DIVERSIFY. If you want to YOLO your life savings into Tesla by all means do so. Most people do not have that kind of risk tolerance and these pumpers trying to convince people to sink their life savings into one stock are criminals.
@@jackalay23 Open your eyes. None of the wealthiest people in this world got there by diversifying. Elon Musk made his fortune from Tesla, Bezos from Amazon, Gates from Microsoft, Ellison from Oracle, Waltons from Walmart... ALL of them made their wealth by concentrating, and preserve their wealth by diversifying. "Diversification is a hedge against ignorance" as the consensus most successful investor of our time (Buffett) said. In fact, Buffett and Munger have both said diversification makes little sense if you know what you're doing. Hell, Buffett's Berkshire is diversified, but his wealth comes from the shares of the company which have appreciated. Buffett says he owns only that 1 stock in his personal portfolio. Diversifying into index funds isn't wrong, it just doesn't produce returns like picking good stocks... A monkey could put money in a S&P 500 index and get the average stock market return😂 I started working at 22 and was sitting on over 400K in liquid savings before I was 26 years old quite literally because I did the opposite of diversifying
@@mateus8676It is totally fine to feed those delusions of grandeur. No doubt there are lots of folks that have yoloed their way to fortune. Of course for every dice roll winner there are 100 that got wrecked. I could care less what you do with your money. My point is these youtube pumpers have already made millions off whatever pump they pedal. To constantly post these videos advising people to go all in is folly. I don't care how many times they say this is not investment advice. They have influence and people listen. Which I'd great until the black swan shows up.
@@jackalay23 I'm not saying your belief is wrong, as long as you're aware that it's very short sighted and ignorant... While you are pessimistic, there are investors making hundred percent gains during a bear market. It is easier to dismiss what you don't understand, but you cannot expect anyone who knows what they're doing to agree
I have a question that is hard to ask .. but would if something happened to Elon ? Where would the company go… I’m highly invested .. just need your opinion …
Great question. IMO Elon is key to Teslas future, however unusual his style. This risk has its own special term "Key Man" Risk. Elon = Tesla & Tesla = Elon. Without his vision and leadership I would feel queasy about my level of investment in Tesla.
Just fyi, the $100k of investable savings/year was just an example of an extremely high earner/saver. Wasn't meant to be an objective minimum of what a high earner/saver is. That is more subjective and depends on a lot of things like your anticipated monthly expenses if/when not working, how much longer you are able to work, and on other factors. So it's more like a sliding scale, and I was just using an extreme example. (Point being, the more replenishable annual investable savings you have, the more you can afford to make mistakes). Safe approach vs riskier approach is also a sliding scale and can be mixed as I share in the video. Anyway, lots of these thoughts are a work in progress. Glad to get a discussion started.
DAVE are you still buying Tesla shares ?
Agree, you said "ideal situation" NOT "typical situation" you had not gone full "valley girl"!
For people starting out save for downpayment on house and invest in 401(K).
Agree, keep your living expenses under control especially transportation expenses (such as a car) and don't take on too large a home mortgage (risky and may need funds for other investments). Jump to high income job may come from college, but resaerch and plan carefully. Keep an open mind for unexpected career and/or travel opportunities.
Yeah. Only 15% of America makes six figures period. The amount of young people that can invest 100k/year is extremely rare.
The biggest paradox of age/wise investing is that in your 20's you have the longest time horizon, so anyone prioritizing the long term realizes you ought to be putting some money to work with investments.
However, it's the first time most people are making any substantial amount of money. It's easy to spend it on standard living expenses and consume the rest for "desire fulfilment," and upgrades to their lifestyle where possible.
Thanks, Dave. I'm almost 70, approaching retirement, and have been a patient, disciplined Boglehead index investor since early adulthood. Two years ago, influenced by people like you, I broke with that history, and put half of my stock market holdings into Tesla. I had already missed the big move in the stock, but even so, Tesla grew so rapidly that it has become 75% of my stock portfolio. I had deliberately reserved enough money in index funds so that even if my Tesla went to zero, I would still have plenty of money to pay my expenses, while growing my portfolio, even as I drew upon it.
At my age, this seemed prudent. If my conviction in Tesla had been incorrect, and the company had gone bankrupt, going all-in would have ruined me. With the aid of hindsight, having gone all-in would have earned me a lot of money, but as they say, hindsight is always 20/20. I took a great deal of risk, investing half of my stock dollars in Tesla, but I also "played it safe", reserving half of my stock in index funds. It seemed like a balanced mix of prudence and daring at the time, and I'm happy with where I sit now.
I could easily have $60,000,000 by the time I die, if Tesla does as well as we enthusiasts believe it will. That is far more than I can use, and far more than my children can use. So I think I'll sell a little Tesla every year, and reinvest it in my index funds, to roughly double them in five years. Then, there will be no doubt that I have plenty to live on, even if the stock market crashes. Even if that modest rebalancing reduces my estate from $60m to $40m, so what?
Tesla has freed me from most financial worry, and has enabled me to set up college accounts for my 20 nieces and nephews. It feels good to share my good fortune with those I love. I have the children invested mostly in Tesla, of course. They are excited to watch the ups and downs of the stock, and they are proud to be helping change the world. One niece, who is five, was amazed recently with her first ride in a Tesla. Her mother told her "You know, honey, your money helped build this beautiful car." The girl's eyes went wide with astonishment. "Really?" she asked. "Yes, really." her mom told her.
I am hoping to hit 1000 shares this month.
So happy for you. Sincerely hope you reach your goal of 60 million and so nice of you to help your nieces and nephews.
What a beautiful and insightful post. Please, continue posting!😀
🥰🥰🥰
@@michelemichele6387 How sweet of you to say this. I am lucky to have these children to share my life, and my good fortune.
It astonishes me to think of what the power of compounding will do for them. They each have 11 shares of Tesla, plus a little Palantir, each account worth a bit over $10,000 today. With 16 years to compound (until the five year-old turns 21), assuming a growth rate of only 15%, $10,000 will grow to about $94,000. I am sure that Tesla will grow much faster than 15%, too.
Before I got into the market I put money into an index fund. It was only later that I found out that this fund was just the top 5 stocks and I was paying a fee. Now I'm all in Tesla.
Hey love the portfolio. You mind me asking did u buy into tesla early or not. I'm just wondering as I'm thinking of increasing my tesla allocation but worried either a full on crash that takes 8 years for recovery or tesla mess up fsd, or elon dies lol. Anyway like the allocation
@@stevetaylor20 if Elon dies, think Tesla will still do fine. Blueprint is baked in now. Same with spacex.
Exactly, especially mutual funds are very expensive. These are even worse than ETFs in charging fees. And even for the simple index ETFs, there is quite in difference between managers for e.g. QQQ.
@@stevetaylor20 June 2020 for me
@@Couly nice man, good work
ALL IN TSLA!!!! 100 %
Dave “stream of consciousness” Lee
😂
Dave Stream of consciousness orders of magnitude Mother of all s curves profound Lee
I think I’m going against most advice I see ou there. I’m 44 and only started investing in the last year. I have low income and only have about $5500 invested at the moment. I don’t diversify and I’m all in on Tesla stock. I have a family and a big mortgage that will see me working into my 70s if I live that long. I decided to take this high risk approach because I don’t have the time or the money to invest in the safe approach. I’m putting whatever I can afford into Tesla stock because I’ve done my research on that one company and believe it’s the safest high risk investment I can make. If I was to lose all the money then yes I’d be devastated but at the same time I’m prepared to take that risk if it helps me to retire a little earlier. Appreciate this video Dave. Thank you.
It's time to sell that house, maybe go to a different state and get a cheap mortgage interest rate now before they go up on a smaller house . It seems you are living beyond your means. You need to save now for income when you retire and medical conditions. I retired at age 46 (now 53).... not because I am wealthy or had investments. I just worked a hard contractor job, saved and lived below my means, then bought my house for cash.
I wish you all the best and pray your hard earned money gives you the maximum returns.
Keep buying at every paycheque. In a couple of years you will be smiling and still keeping up a really great habit. You only need to 10x twice over the course of 2 decades with your entire wealth if your wealth is 100k.
Tsla is half the equation. It might even become the second half the decade after.
@@tioriccopuravidatrader121 I am not living beyond my means at all. All my bills get paid, my family have food and a roof over their heads. So you are suggesting to “save” money? As in have money sitting in a bank account being devalued every year from inflation yeah?
@@farihaafreen9761 Thanks for the kind words.
Grateful to you Dave. I constantly share your teachings to our local high school and college students interested in investments. You are a true public servant. 🙏😇
That might be one of the most valuable non profit work: teaching others about money :)
I think there is another group: low income now, high risk investing, because safe future. I'm 25, biomedical PhD student, but 99% assets are in high growth stocks as I have a safe job for the next years (cant get kicked out) + high income once I graduate (biotech industry).
Holy Mother of Pearls! A Biomedical PhD.. at 25!!!
Great Respect! Wishing you godspeed in all your endeavors, including investing, my friend!
There's risk in your future income as well, like getting into any kind of long term illness. I think spending (minimally) on disability income and critical illness insurance would hedge that risk.
This category defintely exists. Such industries and graduates include, medicine, law, engineering and I.T. low income now (due to studies and the first year to 3 years of work). But generally after that 3rd year, those BIG BUCKS roll in deep, because by then, let's use a lawyer for example. In my country, you'd graduate as a lawyer, for the first 3 years you have to be supervised by your principle lawyer (law firm boss lawyer). After you've 3 years supervised and approved of your certificate, you can now legally open up your own firm/practice. That's when high 6 figures to 7 figures start to accumulate. Same thing with medicine if you're a GP, if you have your own practice ;)
Agreed
Great work Chris. My daughter has just started her Biomed Phd at 21 and is loving it
A lifetime of personal decisions and outcomes distilled in less than 30 minutes. Look after yourself and your family first then, if all is in order, expand out and influence where you can. Everyone has to look after themselves and try not to become a burden. Great stuff Dave,
Well said
100% in on TSLA now. I am so lucky and fortunate to live in a time where I am able to take advantage of the decade where Tesla will make a lot of investors rich.
Outstanding advice. For me, all in 100% Tesla has been the best choice so far and moving forward 5-15 years. Great unbiased information as usual. Thanks, Dave.
Is it still?
Was approaching retirement age with about $200,000 of retirement savings under management. After much research I took control of the funds and went all in on TSLA in early 2019. Now I’m a multi-millionaire looking forward to a comfy retirement. Thanks Elon.
I was in Fidelity paying 500/mo to be in VGT. Took control and went heavy on Tesla just B4 the split. Doing much better now.
Thank you for sharing your well deserved success story. This is a great example of medium risk high reward with an absolutely life changing outcome.
You concerned that your nest egg lost 1/3 since Tesla hit it’s high a few months ago? What if fsd doesn’t pan out or Elon dies etc. you could lose her another 1/3 or much more in a snap.
Buying TSLA in early 2019 was extraordinary timing. Congrats!
@@robertvalinsky9804 you’re right I am “down” a million or so. I’m not concerned in the least. The market is obviously rigged and short term investment is risky but the long term TSLA outlook is as close to a sure thing as death. IMHO
Part of the incentive for doing good is investing in companies that are innovative AND doing things that improve the human condition overall.
Dave, thank you so much for this video. I keep learning from you. This has been the exact Budget strategy for my wife and me as well for the past 10 years. Including putting a large cash investment into Tesla a few years ago and holding onto real estate.
This was very timely advice in this day and age when there is so much financial gurus out there. I like how you present the argument for trusting yourself to evaluate your own unique situation, skill set as well as financial goals before investing.
My portfolio has been 80 percent TSLA and 20 percent NVDA since 2013. No complaints.
I started investing at 19 with a 401k, rolled that into a ROTH when i changed jobs years later. I was going to buy my first house and use 10k from the ROTH. I had a total of 40k. The day before i needed to withdraw the 10k one of the stocks I was in crashed and took my account from 40k to 15k. I withdrew the 10k (bought the house) and was left with 5k. That experience sucked so bad I stopped investing and didnt look at the stock market for 18 years. After hearing about Tesla in 2018 i started funding my old account again which had nothing left since i was all in high risk stuff because i didnt care. I jumped in and started buying TESLA. In 2 years I grew my account to over 433k with shares and call options on Tesla thru the split and Snp Inclusion. Im now 50 and basically just getting started investing again. This market will steal your money if your not careful. I can handle risk but definitely have cut back some during the last year of Tech sector getting crushed. The market is one big game of manipulation and you have to trade based on that understanding. I plan to trade stocks as an income source when i "retire" my remodeling business in 10 years or so. Im down big from the all time high because I ignored risk for a few months to long. I am confident that Tesla will help a lot of people gain financial independence if they invest for 10 years. I dump ALL my spare cash into the market (managing risk more now) since my expenses are very low my house has no mortgage
Holy crap 18 years with no investing :( . But hey I’m glad Tesla worked out for you. Hopefully that 400k will be 4 million in the next decade. I’m 24 and I have 40k I’m looking to deploy into Tesla and turn it into ~500k over the next decade 🙏🏻
@@9770G yea 18 years away from the market led me to "investing" in my skills and learning to run a construction business and restore cars on the side. The money I spent on cars, motorcycles, snowmobiles, quads, and parts and tools I couldve already had that 4 million. Live and LEARN. Be careful in this market. Lots of FEAR causing high volatility. "manage" your risk.
@@tabbott429 ya I’m a car guy myself and always dreamed of owning a corvette or charger hellcat when I was 18-22 but once the pandemic cam it totally changed the way I view money and what to do with it. I used to think just saving ur money in a bank account was “smart” but now I realize that really isn’t the case at all 😂
love the content Dave, this one is a gem for sure. You have gone from 500 vids in early January to already 542 videos just 1,5 months later! insane growth! catching escape velocity
Dave lee is such a nice guy what a great role model
Isn't TSLA a index fund? Cars, robots, software etc etc
You really teaching in a great way! keep it up with that humble and unbiased way, you're awesome
This were the wisest advices I’ve heard for a long time.
Dave this probably one the best videos you made. This is what I was looking for. A guild yo how to approach financial freedom. Not just saying wake up early and work hard but more of a frame work. So many UA-camrs focus on the mechanics, but not the thought process. Thank you so much.
If you can would u be able to group your past videos like compounding together so it will be easier to find when new people on your channel. Hardes thing on UA-cam is finding the correlating videos.
You are correct! Everyone's situation dictates a different investment strategy. Personally, I had been retired for several years when I began studying TESLA in 2019. I became convinced that this was a well managed company with a vision, AND demonstrated ability to execute. I was also convinced that the automobile industry was about to be disrupted by the BEV revolution, led by Tesla. We had a diversified portfolio that included mutual funds and even annuities. We had enough to fund our retirement in perpetuity without my personal IRAs. So I converted both my IRAs to TSLA stock, and the rest is history. I am now in the process of converting the traditional IRAs to Roth IRAs where the TSLA stock can grow tax free. Of course, I have to pay taxes on the stock that I convert to Roth IRAs, and I am doing that with proceeds from the sale of some of the mutual funds. Fortunately, we are financially secure enough to take a hit in diversification, as Tesla becomes a larger percentage of our portfolio. Because we are retired, our simple rule is to concentrate on a few stocks like TSLA only if we can continue to live comfortably with the total loss of such stocks.
Now TSLA overshadows all our other investments, and we have the happy dilemma of deciding what type of good cause to fund.
That's the most balanced investment advice I've heard.
VERY level headed. My summary: Get living expenses taken care of with safe assets and job. Then, invest in high growth for compounding possibility. I'm doing exactly that.
TSLA, ETHE, and GBTC in Roth IRAs. I'm hoping for 8-12X by the end of 2030 (9 years).
Tesla to 12x? Impossible. You do realize that would make Tesla Worth more then market cap of Gold? Lol
@@didafm so?
@@X11CHASE its extremely unlikely
Thanks for sharing your own case, it helps all to understand.
Thanks for the knowledge. As a late bloomer in investing your conversations are great food for thought.
80% TSLA 20% QQQ here
Good stuff Dave! From a financial advisers perspective, this is great general information and advice
Again love your short videos, especially this one! You summed it up pretty well. Thank you for sharing your wisdom and experience.
Dave, are you buying anything in this market crash?? Would love to see an update video on your current investment strategy and if you’re buying anything.
Playing it safe gives low returns, so now you introduce the inflation risk. Being all in on Tesla has meant loosing 50% of my money at times, but this has been more than compensated when the stock goes to the moon. It’s the maximum risk path for me.
Dave's is the G.O.A.T of practical investing principles!
Thanks for bringing back the longer form videos; missed these so much😭
Hey Dave, could you do an episode on renting vs buying properties and give your insights into these two options?
Very well done video Dave
Excellent advice Dave. Thank you. You echo the fat FIRE mantra.
Charles Unger, who is Warren Buffet’s investment partner, said in an interview that he doesn’t believe in diversification. He said that if you can identify a company with good management and business, then you can just buy in that company.
What if your research and conviction led to buying say Facebook and you just lost 40% of your nestegg in a week. Going all in on one of just a couple stocks is absolutely risky.
@@robertvalinsky9804 true. But, Facebook may not pass their criteria though.
Needed to see this now. Your such a good human being. You were blessed for your kindness
How long do you think multiples will compress before they reverse to higher multiples?
Thank Dave for reading on your comment . Like I said , I need to know how to get there and not just theory . Thank you going into more detail . And congratulations again in ellon acknowledge
Just do a combo of both. I have some very high cash-flow companies (like DISCA & MU) but I also own TSLA. I actually think TSLA is very safe at this point though, as its forward P/E has dropped below 90 and will continue dropping as analyst projections increase. My riskiest stock is VYGVF which I doubled-down on at $7/share. Just don't overleverage, and own a few stocks. But don't diversify JUST for the sake of diversification. Only diversify if all opportunities are GREAT. Just my thoughts
Hey Dave, I hope I'm not stepping out of bound, would you mind doing another video of your portfolio? Thanks.
What are your safe assests Dave?
I knew a very wealthy American that only invested in Exxon, the logic was, that this company would be the last standing in a worse case scenario. That was a few decades ago obviously.
I think Tesla is the Exxon of today.
XOM is up 15% YTD and 51% 1yr. But down 5% 5yr.
Thank you 🙏🏼 very much !
Very very cool presentation. Such a golden lesson this one.
Dave, did you remove that review of the CNBC review of Tesla FSD or did UA-cam remove it?
Why you replaced episodw 542?
I’m very new to investing and got caught up in TSLA when it was still around the high $1100s. i’ve managed to get my break even point to around $930. i’ve put in the equivalent of $21k USD but i’ve hit a point where i’m unsure if i should keep adding (i earn the equivalent of 52kUSD/year). i don’t have a house so that’s one thing i’d like to get into as well. sometimes it feels like i’m gambling a bit too much considering my current salary. i’m 35 so i guess i’m not young but not too old either
I sold all my shares at about the same time you bought. TSLA was and still is very over valued. The pain won't end until around 150-250 IMO. You'd be better off buying index funds and holding forever. Don't fall for UA-cam hype channel picks.
@@bazenick Tesla will easily double in 3 years max!
I've been all in for years. Elon changed my definition of risk.
Thanks Dave, a very appropriate video for everyone interested in investing.
Thanks Dave!
Like always simply wonderful David I heard you say power of compound often but how ,
the dividends from stocks that hard to get to double triple the way you describe thanks
Tesla with her multilevel businesses is diversification too! I am all in and still think that I diversificate. 👍🙂..
One of your best videos in my opinion, nice one Dave!
Super Helpful!!!!
Hi Dave, good video. I know what you mean but the proper usage is "risk averse" not "risk adverse."
Just watched the entire video with GREAT information! 👍🏼 I did all the calculations for exactly what type of investment strategy is right for my family 👪 ... STILL going ALL IN on TESLA!!! 😆
Good luck with your money moving nowhere until at least next 5 years.
@@johnreed5056 Yes, Tesla, what a bad stock right. You can't fix dumb can you......
And what if you are old and have no income?
Hi Dave did you take down your cnbc comment fsd beta video ?
Loved this video Dave! And thanks for sharing your story as well! A real story helps to put all the theory into perspective.
One thing though: people cannot relate to figures as high as $1 million. Make the same example with $10k or $1k, and a lot more people will be able to relate to that IMHO.
Agree with everything Dave says except his emphasis on "young age". We live typically to 80 yrs or longer. Even at age 40, you still have good 20-30 yrs to invest. For sure, whether u start investing at age 20,30, or 50 I agree that u need to hustle to increase income, lower expenses, and increase assets ( real estate plus stocks). Then the explosive growth opportunity comes after hustling stage of accruing enough free capital. The biggest secret sauce is knowledge, research to find generational opportunities in business or companies (stock) to invest majority of that free capital. Every success story comes in different stages of preparation that snowballs into a gigantic portfolio of assets. Each person path is different and anyone at any age can get started on this path. No age limitations whatsoever.
@55 I lost 90% of my 401K when the NASDAQ collapsed. Through smart/lucky investing, now 75, I have more than before. Helped to go 90% in on Tesla B4 the split. Now 100% in Tesla and hoping to double my wealth soon. Can’t think of a better bet to increase my wealth at this time.
You manage to cover all the factors in a decision matrix
in one of the most complicated decision making spheres for people
Best all-around summary in 20 minutes I’ve ever seen
such that I’m going to write it out
to include in the counselling
I often give patients in regards to this very stressful part of one’s mental health life..!
Money the proxy of survival And so it becomes a topic 90% of the time
Thanks Dave
Best insight ever, every young person should understand your approach Dave. Thank you
Great thoughts. I follow the same, safe to cove living, and aggressive that I don’t need to live on, but has the potential to do good
Groovy baby! All-In, yeah.
I am 62 and I am all in on Tesla. Thanks to videos like yours and information provided by Tesla, I know a great deal about Tesla. I feel that over the next 5-10 years Tesla will do really well. Tesla's stock price may fluctuate wildly, but the main trend is upwards. I feel that Tesla is far safer than any other investment I could make. Tesla is disrupting major industries, making them all unsafe to invest in. If I diversified, I would just be investing in lessor quality companies or ETFs with a lower return than Tesla will provide. This is not safe, IMO.
Great Thought Process Dave👏👏👏
I dont have 100k a year to invest but more like only 26k a year, I sold entire portfolio and bought all TSLA back in 2020 and never looked back!
AWESOME VIDEO! THANKS DAVE !
Took delivery of our MYLR 9 days ago, and conviction is now pegged at 100%.
I think there's also another level of investing, The pentagon did release a study that said society was likely to collapse within 10 years... the Pentagon that's pretty hard to ignore. That would mean no matter how you're investing no matter how you're saving all of that is going to be gone. Whereas if you invested in say Indoor Vertical hydroponics / aquaponics / land-based salmon farm or even small fishing camp rents loges in the hills somewhere you would have the ability to provide for the people in your family/community irregardless of supply chain stability.
Pretty much like the Ultimate Security blanket, that's also an investment that regardless of the situation makes social or monetary profit.
I could see it
You covered it all Dave. Great information. Now I know I’m doing it right. Some times I have doubts.
you still should, Dave isn't your fiduciary
@@robertvalinsky9804 l had a fiduciary and wasn’t happy with the returns. No risk no reward
Accidentally all in on TSLA...sold my losers, and I refuse to sell T until at least 2025
David, this is awesome advice. Thank you very much
Beautiful outlook on the world. Learn what works for you. (This has taken me 20 years to discover.) best.
Buy Ford stocks especially into the Mach E. Unlike Tesla, who will not allow you buy parts from auto stores and don't have local dealers to my understanding, Ford has maintenance trained mechanics all over if one needs urgent maintenance or repair. To add, the Ford Mach E is said to be roomier, stronger, drives better in snow and best of all has a battery that holds up well in the cold. These have been issues pointed out by Canadians about the Tesla's shortcomings. Chevy is also moving well with EV but Ford is in the driver seat now including with their EV trucks.
This is so good Dave
Appreciate the transparency❣️
Very good video, evokes positive emotions.
I’m 25 make 70k my approach is fast and concentrated for the most part, my safety net is my 401k which is super safe and boring. I’m probably 30-40% safe 401k and 60-70% TSLA. I guess I should mention I live with parents and save almost all my income. All that being said I don’t see tesla as a risky investment 🤷🏻♂️
"Hi It's Dave..."
your videos are really the best. it puts clarity into all of us
All in TSLA and AAPL sell 50% in 10 years and diversify into VOO and real estate
Dave much love ❤️ from Australia 🇦🇺 …mate, you really should be writing a book. You have credibility, humility and a very balanced view of the VALUE of money. A very unique and precious basket of values. Do it. 🙂
Good Educational advice.
There is quite a difference between the experienced and academic approaches, because experience in Business is almost essential to buying Shares in businesses. It's the difference between Industrial Capitalism and Financial Capitalism, the Shop Floor and the Quant's Instruments.., or Buy and Hold and the Casino, in a spectrum of proportioning.
26 all in on tesla 430 shares lol need more
sick, smart guy xD
Excellent video... better strategy than wealth preservation.. thanks.. Dave
Did you delete the CNBC reaction video?
Thanks vm Dave! 🙏
This is really helpful! Thanks Dave
I view investing in TSLA as investing in a mini ETF that chooses the market leader who dominates or will dominate four huge markets: EVs, renewable energy, autonomous robotaxis, and humanoid robots.
Very balanced, I would definitely want my kids to hear this explanation.
Thanks Dave!
Such a great explanation. This is the go to video to share with friends and family when they ask about investments.
It did perk my ears every time you said "bets" for purchases, good thing it wasn't a drinking game.
Define what is having enough? Everyone has to determine that for themselves as everyone is different and have different needs!
One of my top 3 favorite channels on UA-cam ..thanks Dave
Lol, and the other 2 are....?
@@send2dwight Athlean-X and One Message Foundation. 👍
So to summarize it is easy to be "All In" when your sitting 100x in your favorite stock. Wonder how those that went "All In" at $1250 feel about it. Thanks.
This shows how narrow your understanding is. The change in stock price of any company in the short term means absolutely nothing... If Apple or Tesla goes down 2% tomorrow, they're not any better or worse than they were today.
If I wouldn't thought like you, I wouldn't have made over 100K in gains in the last 2 years on tesla
@@mateus8676 no it shows you don't realize it's easy to regret failing to purchase a stock AFTER it 10x or 100x. Nobody nows what a stock is going to do. That is why we make educated guesses and DIVERSIFY. If you want to YOLO your life savings into Tesla by all means do so. Most people do not have that kind of risk tolerance and these pumpers trying to convince people to sink their life savings into one stock are criminals.
@@jackalay23 Open your eyes. None of the wealthiest people in this world got there by diversifying. Elon Musk made his fortune from Tesla, Bezos from Amazon, Gates from Microsoft, Ellison from Oracle, Waltons from Walmart... ALL of them made their wealth by concentrating, and preserve their wealth by diversifying.
"Diversification is a hedge against ignorance" as the consensus most successful investor of our time (Buffett) said. In fact, Buffett and Munger have both said diversification makes little sense if you know what you're doing. Hell, Buffett's Berkshire is diversified, but his wealth comes from the shares of the company which have appreciated. Buffett says he owns only that 1 stock in his personal portfolio.
Diversifying into index funds isn't wrong, it just doesn't produce returns like picking good stocks... A monkey could put money in a S&P 500 index and get the average stock market return😂
I started working at 22 and was sitting on over 400K in liquid savings before I was 26 years old quite literally because I did the opposite of diversifying
@@mateus8676It is totally fine to feed those delusions of grandeur. No doubt there are lots of folks that have yoloed their way to fortune. Of course for every dice roll winner there are 100 that got wrecked. I could care less what you do with your money. My point is these youtube pumpers have already made millions off whatever pump they pedal. To constantly post these videos advising people to go all in is folly. I don't care how many times they say this is not investment advice. They have influence and people listen. Which I'd great until the black swan shows up.
@@jackalay23 I'm not saying your belief is wrong, as long as you're aware that it's very short sighted and ignorant... While you are pessimistic, there are investors making hundred percent gains during a bear market. It is easier to dismiss what you don't understand, but you cannot expect anyone who knows what they're doing to agree
I have a question that is hard to ask .. but would if something happened to Elon ? Where would the company go… I’m highly invested .. just need your opinion …
Great question. IMO Elon is key to Teslas future, however unusual his style. This risk has its own special term "Key Man" Risk. Elon = Tesla & Tesla = Elon. Without his vision and leadership I would feel queasy about my level of investment in Tesla.
@Robert Mandiberg so agree with your final sentence.