I'm not arguing with your risk tolerance. More power to you for derisking in this environment. However, what I am saying is you are placing value on your broker's advice and, according to her, TSLA at this level is too risky for you. I am simply questioning her ability to assess its value and whether she is the best fit for your financial wellness. Most aren't.
My broker has done an excellent job of advising me, based on the very deep analytical resources of her brokerage, regarding my investment portfolio. TSLA is a special case. Which is why I didn't take her advice to reduce my holding to the level of my other single-issue holdings. In hindsight, selling 1/3 of my TSLA holding for an average of $1,610 (pre-split) was a mistake. I've still got 2/3. And I made a bucket of money on the 1/3 I sold even though it turns out I left money on the table.
Note that in addition to my low risk tolerance, I am 72 years old and invested for income. TSLA provides no income if I never sell the shares. I am not concerned about increasing the value of my portfolio. I am concerned about having enough income to enjoy my declining years.
Most analysts have got it wrong you should look at Ark:
Ark's 2024 price target for Tesla remains $7,000, with a $1,500 bear case and $15,000-a-share bull case. Tesla remains the top holding in Ark's
Innovation(ARKK),
Next Generation Internet (ARKW) and
Autonomous Technology and Robotics (ARKQ) ETFs
Every once in a while a company comes along that exceeds everybody's expectations. Tesla is one. I'm optimistic for Tesla's future. But not so optimistic that I'd put all my eggs in one basket. If I'd put everything I owned into TSLA when I bought the shares I have now, I'd be worth an obscene amount of money today. It's 60 times what I paid.
But I'd have had no income to live on, and while we can say in hindsight that it was a good investment, at the time Tesla was teetering on the brink and it was anybody's guess whether it would succeed. I took a risk buying my Roadster because if Tesla had failed, there'd be no service or repairs for the car. The risk paid off and for six years I drove the coolest car on the planet. And I bought a few shares, and that paid off as well. But most new companies fail and the investors lose their shirt. Which is why I'm not obscenely rich now: Because I'm not willing to risk the necessary in pursuit of the superfluous, which is also the reason I'm not a pauper, because while I failed to invest big in Tesla, I also declined to invest in all the failed businesses one could have invested in over my lifetime.
There's always one advisor who picks any given winner. It's a fallacy to imagine that picking one winner in the past means they'll pick the next winner, or that last year's winner will be next year's winner. I see no reason to believe Ark's future predictions over anybody else's. I believe that Tesla will succeed. I don't expect this year's meteoric rise in the stock to continue.
