Asked 2w ago
Answer is no.
When you see people talk about TSLA, BABA, or even general stokcs in forum or coffee shop, it is the time you should be cautiously invested.
Many of experienced investors went in with conviction many months ago at much lower price, because they have done their due diligence. Now they are harvesting the fruits, usually from amateurs who start to chase the bull.
DCA into ETF (such as IWDA) is the right investing philosophy for amateurs.
Note: Not giving any investment advice, I vested in all stocks mentioned above many months ago
An investment decision, will always be aligned with the goals of your portfolio as well as your risk tolerance. If you are looking for high capital appreciation, but have a low risk appetite, TSLA might not suit you.
TSLA is currently on the rise, due to the prospect of EVs changing the automotive scene. Many traditional automakers have also started to produce EV vehicles after the impetus set out by TSLA. In the long run, TLSA would be a company to invest in, despite the weak fundamentals currently.
BABA has been an established company, with many diversified sources of income and a good operating structure. They are constantly looking at ways to diversify their business models, as well as innovate to be the market leader. China has a growing middle-class, and BABA is primed to be the front runner of the race.
There is no right or wrong answer with regards to both companies, infact one might be able to invest in both, just that the amount allocated would reflect the risk tolerance for yourself.
Hope i was able to shed some insight!
*This does not constitute as investment advice. Please do your own due diligence before making any investment decisions.
Yes, you can still invest speculatively, just follow the 90/10 rule if you really want a bite of the cake.
If you DCA, allocate 90% of your investment monies into ETFs while only 10% into speculative stocks:
Not a financial expert here but....
If you want to do the warren buffet style of value investing, then you def won't want to buy tesla. If you want to buy tesla, then you should probably ignore fundamentals coz it will never make sense with a p/e ratio of over 900(doesn't even make sense). You have to look at the longer term perspective of how tesla can potentially change the world. You cant really compare tesla with other companies because all Elon's companies are on a league of their own.
Baba's good in my perspective. I'm not too concern about the regulatory concerns they are facing. All these are short term issues. It's a matter of time that they will get past this. Just like the s&p500 inclusion of tesla when investors are disappointed that tesla wasn't included on their 4th profitable quarter, but on the 5th.
Do it for the long term if you believe in the company. Research deep enough and find conviction. And... if you can stomach highly volatile tech stocks, then go for it. If not, stay away.
Since an amateur has decided to focus on (either of) these two stocks, he/she must research these companies and be able to clearly associate whatever's happening now and soon with potential market prices so that he/she can be more certain about profitability.