A year ago, when we launched our investment portfolio, we asked ourselves: Are we going to invest in Tesla?
A decade later, Tesla still has the best stock performance in history.
Are we still going to buy Tesla?
Or is it time to get the heck out of the house and go elsewhere?
Our answer is no.
Elon Musk is a genius.
He has built a company with a unique technology.
It’s called Tesla Motors, and it’s one of the most profitable in history, with a $32 billion valuation.
Tesla Motors is one of a kind.
But it’s also a massive mistake.
Elon Elon Musk has a genius, a brilliant mind, and a deep understanding of technology.
He’s an inventor, a visionary, a leader, and he’s a global brand.
But he’s also been the biggest risk to the stock market in history: in 2020, his stock plunged from a high of $400 per share to a low of $1.
The stock market crashed and was in a tailspin for nearly three years.
The same thing happened with the other companies in our portfolio.
In 2017, the same thing did.
That’s when we decided to stop investing in Tesla.
That year, we did a lot of work, and we found that the company was a huge failure.
The problems we found, the problems we addressed, the investments we made, and the companies we invested in were all very, very different.
The companies that had problems were all companies that we bought, or bought in the future, but not in the past.
We didn’t invest in companies that were doing well or promising great things.
In 2018, we decided we’d be a lot more careful, and in 2019 we started investing more in companies with solid track records.
We also started taking a more active approach to risk management.
So, in 2020 and 2021, we invested more in stocks that were going to deliver a solid return.
We bought them for a good reason.
They were good companies.
In 2020, the company we invested money in, Tesla, got an all-time high valuation of $2.2 trillion.
In 2021, it rose to $4.6 trillion.
And in 2022, it fell to $2 trillion, or 2.4%.
The same was true in 2024 and 2025.
And this is where things went wrong in 2021, 2021 and 2022.
When we invested the money in Tesla, we also took a big risk.
It wasn’t an alluring investment for us.
It was a risk we were taking on to buy the stock, but we weren’t making a good investment.
It took a lot longer to realize the value of Tesla.
When Tesla was growing at an astounding rate, and its stock was increasing rapidly, we felt confident that it would keep rising at a good rate.
But the company did not grow at an impressive rate.
Tesla’s share price has fallen sharply.
In 2019, it dropped by about 40%.
In 2020 and 2020, it’s fallen by about 70% and 70% respectively.
In the same time, the price of the company’s stock has increased by about 5% annually.
And the stock price of SolarCity, another company that was going to be one of our long-term investments, has also increased.
So in 2020 Tesla was performing pretty well, but in 2021 and 2021 it started falling.
We were losing money, and that’s when it became clear that we were going in the wrong direction.
The problem is that the market has been changing so fast, and companies that have done well tend to do very well.
In some respects, Tesla has done really well.
It is a fantastic company.
But its market valuation is a disaster.
The company’s value has gone up by $500 billion in less than two years.
In fact, the valuation of Tesla has almost doubled.
We’ve been in a market crash for more than 20 years.
We have to pay a lot for the stock because the price has gone down.
In 2022, we started paying more for Tesla stock, and Tesla is still growing.
But in 2021 the stock value has increased from $2 to $8.
So Tesla’s stock value is $2,500, which is just too high for the market.
And so in 2021 we took a bigger risk, and our stock value now is $7,500.
But that means we are paying $50 for each share.
In 2030, Tesla’s value is more than $30 billion.
So what is going on here?
Is the market crash happening at a time when Tesla’s market value is rising?
And if so, is that because of investors getting greedy, or are we simply overvaluing Tesla?
And is it possible that investors are being greedy?
Elon Musk, the founder of Tesla, has said that we have been overvaluating Tesla, because we have made a lot too many bets on it.
That is a lie. We did