During these difficult economic times, thinking and doing thorough research before buying shares or stocks in a company is essential. Is the company likely to do well? Would the share price keep increasing?
The company you are considering may have previously experienced some difficulties, but now that these difficulties have passed, you can continue to review the company’s performance.
Tesla (TSLA -2.84%) stands out as a globally recognized and favored corporation. The influential and debated co-founder and CEO, Elon Musk, is a significant reason behind its widespread appeal.
Tesla Inc (Tesla) is responsible for creating, planning, making, renting, and selling electric vehicles and energy systems for creating and storing energy, along with providing services connected to these items.
The company possesses production sites in the United States, Germany, and China and conducts activities throughout the Asia Pacific and Europe.
At Buffett Online School, we also believe in investing in great companies you understand and utilizing Free Investing Resources to help you start your financial freedom and investment journey is one of the best ways to learn.
We recently had an interview with a seasoned investor with about 65% of his portfolio on Tesla. We'll share Rui Ming's experiences becoming a full-time investor and his knowledge about investing in Tesla.
How to Become a Full-time Investor
Rui Ming aligned his decision to invest full-time with his situation and financial progress. He emphasizes the importance of being financially and mentally prepared before considering this decision.
As an investor for over ten years, Rui Ming accumulated knowledge and investing experience, facing successes and setbacks. His investment approach involves continuous learning, reading, and engaging with investor communities, especially about businesses he’s interested in, like Tesla.
Rui Ming's full-time investor lifestyle includes constant market monitoring, reading financial news, participating in investment communities, and connecting with fellow investors. Just like Warren Buffett, he reads many books on different topics, not just on investing. He shares how reading philosophy, history, and human psychology helps him understand how to invest best.
He shares one of his recommended books to gain some knowledge on history: the book by Ray Dalio, Principles for Dealing with the Changing World Order.
He quips that being a full-time investor can be boring. Rui Ming highlights the importance of networking with fellow investors and seeking advice from those who transitioned to full-time investing.
For him, spending time with positive people is beneficial. Your surroundings shape you, and 6% of the people you're around most influence you. Also, consider worst-case scenarios and have savings that can cover you for two to two and a half years of expenses.
On Building a Portfolio and Considering Tesla
Rui Ming's portfolio comprises 65-70% Tesla stock, which only started at 2%. When Tesla and other stocks experienced a drop, investors undertook discussions and careful consideration.
He shares that one should keep a specific amount when having money. Later on, investors will also realize that having some money saved up can make them feel better. It's like having a safety blanket and feeling more in charge.
As for thoughts on diversification across countries, it is acceptable if one feels at ease. Uncertainties exist about the extent to which global shifts affect markets. Adjust diversification accordingly if an investor is uncomfortable with a substantial US allocation.
People are thinking about what could happen if the US and China had a significant conflict that led to World War III. They worry that this might decrease the stock market for a long time, maybe around five years.
They think about the worst thing that could happen in this situation. The chances of this occurring in the next five to ten years are small, like 0.001% or even less. Famous investors like Warren Buffett suggest it's better to focus on how strong a company is rather than getting all caught up in big economic stuff, interest rates, or when the economy is not doing well.
Rui Ming agrees with this way of thinking, where the important thing is to see what makes a business resilient and strong instead of just looking at what's happening outside. When you look at Tesla, you can see things that reflect that it's a strong company.
We saw how Tesla's stock price has been going up and down recently, even though the company has been doing better in the past few months. Rui Ming thinks it's wise to focus on how well a company is doing when investing. This will usually yield good results.
But some people need help because they have full-time jobs and families, which takes up much of their time. Investing in exchange-traded funds (ETFs) is a good option for them.
Regarding different types of investments, not just stocks, Rui Ming puts money into properties, but mostly stocks. They mainly invest about 90% in equities; a small part goes into cryptocurrencies.
When asked whether it's better to trade often or buy and hold, Rui Ming shares that he does a bit of both. They have a primary set of investments that they keep for a long time. But sometimes, they do some active trading for fun and to keep things balanced.
In conclusion, Tesla is one of the globally recognized companies. Even if it does not change much in the coming years, your investment is still a good choice as long as it keeps improving.
Investing entails Continuous Learning
Rui Ming's advice for you who wants to invest in Tesla or other companies based on your preference is to keep learning new things and getting better at what you do. It helps improve your investment choices, grow as a person, and improve at what you're good at.
Think of how your money can grow significantly over time when you invest it wisely – learning and improving can increase simultaneously. If you keep learning and getting better at what you do, you'll be ready for what might happen in the future and can make sound investment choices.
Rui Ming has learned a lot over the years, and he believes that always learning new things can help other people succeed, too, especially if they're on a similar journey.
Keep learning! - Rui Ming
Watch the full interview on Chloe Lin - Arigato Investor’s channel!
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