To The Moon

Investor lost money on Tesla

This is why you should never buy a stock based on rumours or news of something happening.

"Timothy Fries, a member of the class who testified Friday, said he lost $5,000 after buying 50 shares of Tesla stock following Mr. Musk's tweets. Those shares cost $370 apiece, an investment report showed. He sold those shares at a loss in early September 2018, he said, after it had become clear Tesla wouldn't go private."

Taking into account of the stock split in 2020 August (5:1) and 2022 August (3:1), this would work out his cost price today of $24.67. He would have had 50 x 15 = 750 shares, and even he he panic sold his shares on Jan 6 thus year at $101.81, he would still be in the green with profits of $57,855! And if he didn't sell, assuming the last close of $143.75, his unrealised profits would be $89,310.

This shows that you need to do your own research on why you buy a stock, what is the investment thesis behind it, what are the economic moats that company has, and to never make an investment based on some tweet or online discussion. The other thing also shows that if you let time work things out, you stand to allowyour investments to compound and ride out any short term liability. 

@TigerStars