cancel
Showing results for 
Search instead for 
Did you mean: 
     
Highlighted
Participant ○○○

Re: Buy at what price?

I'm relatively content with FAANG being a proxy for the hyper-growth Tech market but I would not be personally that interested in adding Telsa to make that FATANG. I'm rooting for Musk (the world needs visionaries), but not buying into the current valuation.

0 Kudos
Highlighted
Frequent Contributor

Re: Buy at what price?


@chang wrote:

@Intruder wrote:

@chang wrote:

@Fishingrod  Yeah I hear you on Tesla’s meteoric rise. Yet ... you have to wonder why your (actively managed) fund managers—no dummies—continue to hold it.


Because 2020 TR for TSLA Is 295%?


I hope that’s not their reason for holding it!


Why?

do you think TSLA Stock will continue to decline when it is on track to produce a record  500,000 cars In 2020?

0 Kudos
Highlighted
Frequent Contributor

Re: Buy at what price?


@chang wrote:

@Intruder wrote:

@chang wrote:

@Fishingrod  Yeah I hear you on Tesla’s meteoric rise. Yet ... you have to wonder why your (actively managed) fund managers—no dummies—continue to hold it.


Because 2020 TR for TSLA Is 295%?


I hope that’s not their reason for holding it!


Would you sell AAPL because Its 2020 TR is only 54%?

0 Kudos
Highlighted
Frequent Contributor

Re: Buy at what price?


@Intruder wrote:

@chang wrote:

@Intruder wrote:

@chang wrote:

@Fishingrod  Yeah I hear you on Tesla’s meteoric rise. Yet ... you have to wonder why your (actively managed) fund managers—no dummies—continue to hold it.


Because 2020 TR for TSLA Is 295%?


I hope that’s not their reason for holding it!


Why?

do you think TSLA Stock will continue to decline when it is on track to produce a record  500,000 cars In 2020?


 No. Holding a stock just because it soared in the previous year isn’t what active fund managers should do. That’s what index funds are for.

0 Kudos
Highlighted
Frequent Contributor

Re: Buy at what price?


@chang wrote:

@Intruder wrote:

@chang wrote:

@Intruder wrote:

@chang wrote:

@Fishingrod  Yeah I hear you on Tesla’s meteoric rise. Yet ... you have to wonder why your (actively managed) fund managers—no dummies—continue to hold it.


Because 2020 TR for TSLA Is 295%?


I hope that’s not their reason for holding it!


Why?

do you think TSLA Stock will continue to decline when it is on track to produce a record  500,000 cars In 2020?


 No. Holding a stock just because it soared in the previous year isn’t what active fund managers should do. That’s what index funds are for.


What previous year are you referring to? 295% TR is for 2020.

0 Kudos
Highlighted
Frequent Contributor

Re: Buy at what price?


@Intruder wrote:

@chang wrote:

@Intruder wrote:

@chang wrote:

@Intruder wrote:

@chang wrote:

@Fishingrod  Yeah I hear you on Tesla’s meteoric rise. Yet ... you have to wonder why your (actively managed) fund managers—no dummies—continue to hold it.


Because 2020 TR for TSLA Is 295%?


I hope that’s not their reason for holding it!


Why?

do you think TSLA Stock will continue to decline when it is on track to produce a record  500,000 cars In 2020?


 No. Holding a stock just because it soared in the previous year isn’t what active fund managers should do. That’s what index funds are for.


What previous year are you referring to? 295% TR is for 2020.


We are talking past each other. All I am saying is that an actively managed fund should not hold a stock simply because it has returned X% in the last Y months. To chase momentum, there are momentum ETFs. To simply ride stocks with the biggest recent gains, I can buy the index* (or the stocks themselves). I expect active managers to own stocks based on company/market analysis suggesting the company has competitive advantages (as well as a current valuation) which position it to deliver a superior return. Recent price action shouldn't matter; in fact, if anything, most managers are more likely to sell a stock that has surged in price than to buy more, unless there are reasons to believe it remains undervalued or has enormous advantages that position it for continued outperformance.  

(*That's often the problem with [cap weighted] index funds. They own more and more of stocks/sectors as they increase in value, even when they are overbought ... and likewise they own less and less of stocks/sectors that decline in value, even when they are oversold. Nevertheless, index funds have their uses, and I own some.)    

0 Kudos
Highlighted
Frequent Contributor

Re: Buy at what price?


@chang wrote:

@Intruder wrote:

@chang wrote:

@Intruder wrote:

@chang wrote:

@Intruder wrote:

@chang wrote:

@Fishingrod  Yeah I hear you on Tesla’s meteoric rise. Yet ... you have to wonder why your (actively managed) fund managers—no dummies—continue to hold it.


Because 2020 TR for TSLA Is 295%?


I hope that’s not their reason for holding it!


Why?

do you think TSLA Stock will continue to decline when it is on track to produce a record  500,000 cars In 2020?


 No. Holding a stock just because it soared in the previous year isn’t what active fund managers should do. That’s what index funds are for.


What previous year are you referring to? 295% TR is for 2020.


We are talking past each other. All I am saying is that an actively managed fund should not hold a stock simply because it has returned X% in the last Y months. To chase momentum, there are momentum ETFs. To simply ride stocks with the biggest recent gains, I can buy the index* (or the stocks themselves). I expect active managers to own stocks based on company/market analysis suggesting the company has competitive advantages (as well as a current valuation) which position it to deliver a superior return. Recent price action shouldn't matter; in fact, if anything, most managers are more likely to sell a stock that has surged in price than to buy more, unless there are reasons to believe it remains undervalued or has enormous advantages that position it for continued outperformance.  

(*That's often the problem with [cap weighted] index funds. They own more and more of stocks/sectors as they increase in value, even when they are overbought ... and likewise they own less and less of stocks/sectors that decline in value, even when they are oversold. Nevertheless, index funds have their uses, and I own some.)    


Active managers compete to out perform the market. You need to read the Fund prospectus to determine what is the fund managers strategy. There is nothing in the playbook for active managers which says that momentum is not a permissible investment strategy. What you expect and what the manager does are two different concepts. Find an active fund that meets all the criteria which you believe an active fund should have.

0 Kudos
Highlighted
Frequent Contributor

Re: Buy at what price?

Should have bought at $330!

0 Kudos
Highlighted
Frequent Contributor

Re: Buy at what price?


@chang wrote:

Should have bought at $330!


Look at the bright side . You can buy NFLX at 476, down from 556 On sept 1. Such a deal.

0 Kudos
Announcements