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39 Year Old Earned 12 Million from Tesla Stock! Retires!

Lordfunkbox

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But what should he do to ensure that he doesn't lose it all in the event the company fails and the value plummets? Can't he claim a piece every month, put it in a HY savings or CD? Park it somewhere so that all his money isn't resting on a gamble?

I don't see how one can retire if all their money is tied up in investments that could be lost at any given moment. That's betting too much. I rather cash out at $900k than wait for $10M and end up losing it all. I rather quit while I'm ahead. I don't need to be filthy rich, just comfortable enough to live.

Exactly. I don't know why he would keep it all in investments. Take out a certain percentage and put in it a high yield savings account and live off of that while keeping the remainder invested.
 

~Wildflower~

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But what should he do to ensure that he doesn't lose it all in the event the company fails and the value plummets? Can't he claim a piece every month, put it in a HY savings or CD? Park it somewhere so that all his money isn't resting on a gamble?

I don't see how one can retire if all their money is tied up in investments that could be lost at any given moment. That's betting too much. I rather cash out at $900k than wait for $10M and end up losing it all. I rather quit while I'm ahead. I don't need to be filthy rich, just comfortable enough to live.

I totally get it! You have to do what you feel comfortable with. Like you said, if you had 11M, that's good enough for you. You would cash out. I get it! I'm not greedy either. But you fear what you don't know. So instead of being fearful and losing out, study the market. Inform yourself so you won't make impulsive decisions.

I agree that he should not put ALL of his eggs in one basket. He should invest in other stocks and make sure that his portfolio is diverse. Besides, he's single right now. But when he gets a wife and starts having kids I'm sure they'll put a dent in his "wallet"!! :p
 

Thinkingoutloud90

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Hi! Many markets are worth investing in. But tech is a sector that can experience exponential growth in a short amount of time due to innovation and technological advancement. Other industries may grow at a slower and steadier pace. As well, tech is merging and advancing many industries such as healthcare, genomics and banking/ finance. Tech is naturally going to integrate with every industry eventually.

Wow. Thank you for the explanation! It makes complete sense based on the integration component, as you mentioned. I do wonder if there will be a saturation though? Or maybe another tech evolution that will be even more advanced...
 

LazyDaisy

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I totally get it! You have to do what you feel comfortable with. Like you said, if you had 11M, that's good enough for you. You would cash out. I get it! I'm not greedy either. But you fear what you don't know. So instead of being fearful and losing out, study the market. Inform yourself so you won't make impulsive decisions.

I agree that he should not put ALL of his eggs in one basket. He should invest in other stocks and make sure that his portfolio is diverse. Besides, he's single right now. But when he gets a wife and starts having kids I'm sure they'll put a dent in his "wallet"!! :p
Yeah, thanks for this!
 
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I would sell at least 1/4 or 1/2 just in case it crashes! I have family members who have made 1 million + with Tesla, but not this much.
 

AnjeeBanjee

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giphy.gif
 

DHero

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he's smart for not moving it. The longer it stays, the less taxes he pays. He can sell covered calls and cash secured puts and probably walk away with 50-100k a month of just free random money without touching his underlying tesla position.

And tesla is about to explode now that EV is the new bubble.

Yep, that 12mil is going to explode to a few hundred in a few years, and then a few billion in a decade, just from the value of the tesla stock alone.
 

heiwa

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There's a group on facebook called stock sisters. It has ALOT of units about 60 or 70 to get through, but it makes understanding investing in stock very easy.

I second this. I'm part of this group as well, the units are helpful.
 

PrettyBoyFlizzy

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But what should he do to ensure that he doesn't lose it all in the event the company fails and the value plummets? Can't he claim a piece every month, put it in a HY savings or CD? Park it somewhere so that all his money isn't resting on a gamble?

I don't see how one can retire if all their money is tied up in investments that could be lost at any given moment. That's betting too much. I rather cash out at $900k than wait for $10M and end up losing it all. I rather quit while I'm ahead. I don't need to be filthy rich, just comfortable enough to live.

That's what I've never quite understood about investing. The money is only good while it's invested but in order to use it you have to sell the stocks. Then you no longer have a million dollar portfolio. I guess if you've reached a point where you can cash out and rely on other stocks to keep growing, it works itself out.

With that much on hand though, he could definitely cash out enough to live on for a while and still have a lot to hold on to. I wouldn't just leave it all in there though.
 

Wintertime Cold

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Good for him! He took an early risk (bought Tesla at $7.50) and stuck through.

I am trying to be less risk adverse with my portfolio this year.
 

Urbest

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impressive, but I'll advise him to sell, tesla is in bubble territory and it's gonna burst sooner rather than later.
the stock did so well this year due to the excess liquidity in the markets, triggered by the government's stimulus plan.
All capital markets are overpriced currently, and after joe bidens stimulus checks go out, the reality is going to set in and the market is gonna correct itself, like it always does.
What are some good stocks to get into?
 

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