13 Dec 2020
Though I'm not sure if Telsa will still be here the next 80 years?
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TSLA's current valuation is extremely lofty... and if you are investing in the hope of it being the next 'Amazon' of sorts, then its just plain speculation. All the dyodd advice you get when you ask if you should invest in TSLA is just gobbledygook imo. Short answer is if you can take a hit to your capital, and don't mind losing that money, then no one can stop you... but maybe you should ask yourself why do you want to invest in TSLA? If for short term volatility play, selling put options on TSLA are perhaps better. There are many other avenues to invest your money if its for the long term...robo, dca, etfs.. if you are just fomo, then chances are you will get burnt.
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It's great that you want to invest for your child! Before anything, do check out this link on investing.
Think is quite hard to answer with lack of more information. (I.e, what is your risk profile for investments?)
For your 10-year old, I would suggest conservative profile.
For a conservative risk profile. Please avoid Tesla completely. Mutual funds are okay if you do not want to manage investing yourself. (But it could be replaced by robo-advisors)
There is also govt scheme like the child development account.
For more info, see link below.
Also: Finding a trusted financial advisor might be a good idea too.
Above are just my thoughts. Please do due diligence!!
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We never know if Tesla will be around for the next 80 years. Either ways, you will have to assess your risk tolerance. If you are investing for your child, you may want to have a portfolio that helps hedge against the systemic risk of the market. If Tesla goes down, at least there's a cushion from that so risk management is very important, easpecially since this is for your child. Putting a sizeable amount of your funds in one stock poses a concentration risk too so you might want to diversify out more.
You can engage a financial advisor to manage your investments for you or do it via a roboadvisor. Typically, these two approaches allow you to craft a diversified portfolio with different allocations of asset classes (equities, high risk high reward VS fixed income, Low risk, Low gains) depending on your risk tolerance.
There are other options eg. ETFs that you can opt for but do note that these are fully 100% equities, ie. there is nothing to hedge against the volatility unless you have a fixed income fund In your investment Budget.
Financial planning is an integral part of life. You can reach me here to find out more.
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Jonathan Chia Guangrong
02 Dec 2020
Cybersecurity Trainee at Bank in blue
I'd advise against the use of mutual funds. The fees over the long term will eat into the profits gr...
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