Why I Don’t Invest in Tesla Stock

– Tesla stock is the battleground
for big time investors. It’s where the shorts and the longs, the bulls and the bears,
come to fight it out over every little detail
and actually reality itself doesn’t matter here, it’s just about who’s trying to further their position and make more money over the other guy. And that has led me to
have a very cynical view of investing, not just
in Tesla, but in any individual company because
of the phenomenon that really disconnects reality
from the stock market. Now, if that’s totally
confusing to you, that’s fine because this whole thing is
kind of abstract and weird. But on today’s video, I
wanted to just talk quickly, maybe not as quickly about
my investment strategy when it comes to Tesla and that’s
that I don’t have one. I do get this question a lot. Why don’t I invest in them? Ya know, what’s wrong with you? How come you don’t support them? Well, I think it goes a
little bit deeper than that and my thoughts on it are maybe a little bit more complicated. So let’s dive into that and I’m gonna try to explain to you why I don’t and never will invest in Tesla. Let’s go. (upbeat groovy music) When Tesla IPO’d, the stock was at $17. Then, in 2013, it jumped up to $193. Shortly thereafter in November, down 34% to $127. Fast forward to February of the next year and you’re up 92% to $244 and you fast forward just another month and you’re down 15%. Fast forward a few more years,
you’re up 68% now at $350, kind of an all-time
high when Tesla’s really hitting their stride
delivering the model three and everything’s looking great. To May of 2019 where it’s down almost 50% again to 185. It’s up since then, but you get the point. Tesla stock is extremely volatile and the ups and downs of
Tesla stock aren’t actually always driven based on
the numbers in reality. For example, in August of
2018, Elon gave an interview to the New York Times
which was extremely candid and he talked a lot about
his emotional struggles that he went through and
some of the challenges of being in his position. And as a result, the stock dropped by $30, almost a full 10% of the
company’s value, just vanished because he was open and
candid in an interview. He also lost a battle
with the SEC over a tweet that cost him $20
million and forced him to step down as Chairman of the Board. He got into a fight
with the Thai cave diver for some reason and got sued over that. As well, he pissed off a bunch of analysts when he cut one of them
off on an earnings call saying that boring bonehead
questions will not be answered. – [Man On Phone] And so where
specifically will you be in terms of– – [Elon] May I? Boring bonehead questions
are not cool, next. – So not only is Tesla
stock the battleground stock where ya know, the bulls and
bears come to fight it out with their billions of dollars on ya know, either side of that equation,
it’s also led by someone who is, I’ll just say markedly human that makes mistakes, that is
honest and open, very different than your typical CEO, something
that I think he probably prides himself on but,
sometimes that clearly sends the stock soaring and
tanking on a regular basis. All of that is not really just
to bash on Elon for the stuff but it’s just to make the
point that if you’re investing and trying to actually secure
financial freedom for your future or whatever your motivation may be, this is gonna be some
really difficult stuff and a bit of a rollercoaster
that you’re gonna have to ride through and
one that when it comes to my family’s future and
our financial security, not one that I’m willing
to participate in. But it goes much deeper
than just this one stock. I actually have sort of a, well okay, an entirely cynical view of
the stock market as a whole because I believe the system
is basically rigged against us regular what you call retail investors. I’m not the only one. Michael Lewis, the author
of Moneyball, The Big Short, and a book called Flash Boys
about the stock market itself also agrees that basically,
the system is set up for retail investors to get
the short end of the stick nearly every time. – What’s the most valuable order for a high frequency trader to exploit? It’s a market order from
an individual investor because the individual investor has such a slow feed basically. – So what he’s talking
about here is something that is called front running where an order comes in, an
investment house sees that order and then is able to buy that
stock and then sell it back at a few pennies more, a
fractionally higher price. As a retail investor, you
may not even notice this because you place the order,
it takes a few minutes. Maybe ya know, an hour or
something for it to clear, whatever, and then, ya
know, you bought the stock, but it wasn’t the exact
price you clicked buy at. And that little margin there
adds up to a lot of money for these guys and if
they did it illegally, let’s say Bank of America or Merrill Lynch or something that you actually were making the purchase with did that, that would be illegal and you
may think that doesn’t happen. However, in March of 2018, Bank of America admitted to systematically misleading clients between 2008 and 2013 about how orders were
handled for more than four billion shares of stock. In March of 2019, Barclays
was sued for front-running and in 2018 also, HSBC paid $101 million to settle criminal front-running charges. So, if you think, “Wow, that’s crazy. “How could they do that?” Well they do and the deal is, let’s say you have to
pay $101 million fine. That’s pennies on the
dollar compared to the money you made by cheating your own clients. So not only is the system
just kind of designed with the legal form of
front-running by being ya know, faster than you are when
placing those orders and buying and selling. They’re doing it illegally
and still making tons and tons of money. So, will it stop? Probably not. If you think about it,
let’s say you got a fine for $10 on an activity
that you made 100,000 on. You’re gonna keep doing it, right, until you go to jail
which you’ve seen ya know, Wall Street’s somehow able
to get outta that most times. According to Mark Cuban, this actually isn’t even the biggest risk. – The risk is all these
different high frequency traders playing a game with their
algorithms trying to trick each other to get
in front of each other to make that trade and
because we don’t know all the algorithms, because we
don’t know the n factorial, all of the different
ways they may interact and the negative consequences
that occur as a result, that introduces a market risk. That market risk has
an unquantifiable cost. We saw it in one instance
with the flash crash. We see it every day with
little mini flash crashes. We’ve seen some, it’s
gotten a little bit better with the circuit breakers per
spot, but we just don’t know and that’s even without the
possibility of a malicious algorithm being intentionally
introduced into the mix. So there’s so many
things that can go wrong as all these high frequency
traders jockey to get in front of that order. That, to me, is the biggest problem. – So to me, the whole notion of investing in an individual company run
by people that are fallable, that make mistakes, that are human in a system that is
literally set up for you to get cheated and ya know, even
when they do it illegally, and still are gonna continue
to do it apparently. It’s just kinda crazy. It doesn’t make any sense to me anyways when it comes to my
family’s financial security. Now, the deal here is
that it’s a human design and human run system. So it is inherently flawed. There are always gonna be
ways to cheat the system and rules that come out and change it and kinda put certain people
at a disadvantage or whatever. But what if we could have a
system that isn’t like that, that is run by math and code. Could we actually fix this? Yes, I’m talking about bitcoin
and cryptocurrencies here. Now whether or not you have
any experience with that, I wanted to sit down with
my friend, Cedric Dahl, who has a great show on YouTube
here called Internet Money and asked him about this. Is bitcoin fair? Is it a system that is infallible. Does it solve all the issues
that we just talked about with regards to the regular stock market. – What crypto’s really
about is about fairness. So, the inventors, I’m
pretty sure it was at least a couple people, I don’t
think Satoshi, the creator, is one person, so the inventors
realized that the money game before bitcoin, before crypto was rigged. It was one-sided. So, the people who make the
money have all the power and everyone else has no power. Now, governments in a really simple way, they’re about treasure reallocation. You have treasure, I have
treasure, we make treasure. And some of that treasure is
reallocated through taxes. There’s nothing wrong with this, per say, but it does happen. Now, different governments
use different amounts of force to get this treasure, right? So, what bitcoin did is the
inventors were like look, we’re gonna create a system
where every single person has the exact same power. Like you government no matter
how many guns you have, no matter how big your army is, you can not take this other person’s coin. Now there’s a catch here. It’s the tech paradox which
is that the earlier tech is, the harder it is to use. So today, crypto is stupid early. I mean, a lot of people
think they missed the boat. The boat hasn’t even left the dock yet. But here’s the thing is today– – Still just hoisting the sails. – Yeah, if you’re gonna really own crypto like in the way that you’re trying to make a huge amount of money, it’s my opinion ’cause this is not
financial advice that it’s, the security is still
too hard for most people. But eventually, security
will become easy enough that everyone can hold
their own crypto securely. It’s too hard right now. It’s too hard for most
people and so, ya know, in the US, we don’t have a
lot of problems right now but if you’re in Venezuela, wow, you really want control
over your treasure. Ya know, if you’re in
a place where there’s lots of capital controls like China and you’re trying to get out, you really want control of your treasure. You know, there are countless places with really tough capital controls. India, for example, and so, there are more examples of
places where you want control of your treasure than where
you don’t and ya know, when push comes to shove, if
you’re backed into a corner, you really want the
same power as the people that are backing you into a corner ’cause you do not wanna have everything you’ve ever worked for taken from you. Like my grandfather did and
like countless other people have throughout history. – Now whether or not you
subscribe to that way of thinking or not, I think it’s a
really interesting time as an investor but when
it comes to my family’s financial security, the way I go about it and for the record, this
is not financial advice. I’m not a financial advisor, please consult someone before
you make any decisions. Do not take anything I say
here as financial advice. So, with that disclaimer, what I do is I try to spread my money out to as many different places as possible. Yes, cryptocurrency obviously. Yes, I do have money in the stock market. It is a small percentage
and I do it in index funds. If you aren’t familiar with that, it’s basically like a mutual
fund without the fees. So ya know, go look that
up if you’re curious at all and then, of course, I have real estate and I guess cars if they appreciate. No, just kidding about that. But, point being, there is
no perfect solution here. There is no perfect system. But from my perspective,
when it comes to ya know, securing my financial
future for my family, investing into individual
stock where you have billion dollar hedge funds
competing with each other, it’s kind of nuts. I mean, this is literally
like trying to ya know, play in the NBA finals
when you don’t even know how to shoot the ball. You’re going up and
you’re trying to compete with these guys which is nuts. Now, if you’re gonna hold
the stock for 20 years or something like that, maybe ya know, you’re not worried about those things. But, for me, I’m gonna go super low risk in a system that I believe
is completely flawed and kind of designed to
ya know, for me to lose. It’s kinda like gambling in that way wwhere the house is
always gonna win there. But, maybe that’s just me. Maybe I have an incredibly cynical view and I’m wrong about it. I’d love to know from you
what your strategy is. What do you think? Is there something I’m inherently missing? Is there something else, a new strategy I should be considering? Please let me know down in the comments and don’t forget, when you free the data, your mind will follow. I’ll see you guys back
here in the next one. (upbeat music) Hey, thanks for watching the video. I hope you got something out of it. Now if you want to dive deeper, become a part of the
Teslanomics community, consider joining us on Patreon. One specific benefit that
you saw a glimpse of here was that interview with
my friend, Cedric Dahl, who is a cryptocurrency expert. I posted the full interview on Patreon for anyone that is a part of
the community to go check out. So, if you wanna see more from Cedric, learn about cryptocurrency, go check it out now at
patreon.com/teslanomics. (upbeat music)

100 thoughts on “Why I Don’t Invest in Tesla Stock”

  1. I would also disagree but on slightly different points than most of the comments.
    Don’t worry about a few cents per share, buy and hold stocks in companies you understand. Anything less is a true gamble. It’s true that all investing is gambling but time is your ace in the hole. Using Tesla as an example those $17 shares were a value looking back 6 years later at $228 or even a few weeks ago at $178. I love real estate but you’re not going to get that kind of return.

  2. If you do your due diligence, you invest in a company for their current and future "product" line, in this sense, why do you care if the price drops or climbs in the meantime, what matters is that by the time you had previously set to sell, the price is higher. When i buy stock, the buy to own the stock time is measured in milliseconds, i doubt my brokers gets to make money in that timeframe. The stock market as anything in the world, we surely can't escape this, is tilted to those who owns more than who owns less, the basic monetary system is like this or do you think your dollars are weighted in the same manner as those with billions? At least in the stock market i can make my own way instead of putting my money in the bank and letting them get a run with my money in exchange for one or 2 pennies on the dollar. And I'm certain that they make way more than 2% on the stock market without you knowing about them using your money.

    On the bitcoin side of this story, why didn't you show the graphic of it's value like you did for the Tesla stock? And show some headlines about hackers who stole entire crypto currency wallets from several clients valued in millions of dollars or about people who lost all of their savings in the 2017 crypto currency bubble.

    What i mean by this is that are two sides to each case and you choose to just show one side of each case.

  3. Read “The Simple Path to Wealth”. It doesn’t have to be complicated. Index funds all the way. Ignore the rest of the noise.

  4. I always buy at limit price. Buy SP 500 ETF. Tesla, once Chinese gigafactory is up and running the story will change.
    Cryptos, lol. Unregulated. Fraud exchanges.

  5. True statements when you invest short-term. If you invest long-term, the market will finally mirror the value of the stock.

  6. Summary of Ben Sullins' advice: The U.S. stock market is rigged, so my family buys Bitcoin's make-believe money 🙂

  7. Than you could change your channel name than because you don’t understand the Tesla business model and how they are kill it on the revenue side eventually if you grow your revenue invested will come.

  8. Dude, I like your style, but Trading is not the same thing as investing. While these are real traps that take traders for a ride, long term investing is an entirely different thing with entirely different strategy. The question is, is Elon Musk and his different companies going to change the way we function as a society, how far ahead are his companies and is competition something they need to worry about? Losing a few pennies from your buy in doesn't effect a long term investor that is looking for how long Tesla will be around and how far they will reach.

  9. Sitting here watching you rant about how the economic system is rigged when I was about to suggest BITCOIN!! LOL you beat me to the punch.

  10. I completely agree with your thoughts on the share market Ben, but then you tried to present crypto as a stable investment? Very odd, and plainly inaccurate. The tech behind crypto may level the playing field as you began to explain, but the crypto itself is not something a typical retail investor should touch with a mile long barge pole.

  11. I think a missed opportunity for your argument is that you have "invested" in Tesla, by way of purchasing/owning their products, and creating a job/lifestyle directly related to everything Tesla.

  12. This video should really be titled "Why I don't trade TSLA"

    I'm a long time viewer and generally love your content, but you have conflated investing with trading. The simple act of buying a stock is just buying stock. Whether it's a trade or an investment depends on when you plan to SELL. If it's in the time span ranging from a year from now to never, then it's called investing. Anything sooner is called trading. Volatility, high frequency algorithms, and front running are all issues for traders: The people who make money on an asset by looking to buy and then sell in a short span of time to capture a small movement- a movement that becomes smaller or even reversed on them if an algorithm detects and front runs their order. But again, that's an issue for traders.

    Investing is different because you're looking to buy at point A and willing to wait until it gets to point B to sell. The exact path doesn't matter, if you have reasonable confidence that eventually it will get to the destination. What's funny to me is you seem to buy this premise with cryptocurrency, but treat stocks as if they operate under different market conditions. They don't, and I can say that as someone who also keeps an eye on the world of cryptocurrency. To me it's funny even, because the only asset that jumps to mind that's more volatile than TSLA is BTC.

    Anyways not here to throw shade, just trying to clarify the distinction that I think might have been a bit muddled in your perception of "stonks." To reiterate, I think a lot of tech from the world of Tesla to even bitcoin is worth looking at and even potentially investing in- but you have to be ballsy as hell or downright insane to actively trade them, so I don't. Instead, I invest. All the volatility, the headlines, the algos, and the FUD can't change the fact that I expect Tesla to be more valuable 5, 10, or even 20 years from now than it currently is. If you think the same thing, consider investing.

  13. First I want to say I really like a Ben and his channel, but….

    In my opinion this is utter nonsense. Although not guaranteed the stock market has on average, provided more consistent high returns overtime than any other investment. Yes, there is fraud and to get very rich In the stock market do you need to be one of these big players like Ben says, yet it still doesn’t mean that it isn’t still the best for regular investors. Just because some small fraction of my money is taken(fraudulently) when I buy stock in no way makes it a bad investment Compared to the alternatives. Not saying I like or it is fair it but if you buy a Tesla stock and got cheated on by the system for a fraction of percent, in financial terms that would be considered a immaterial. Even though you got stolen from it’ll make no noticeable difference to the value of your investment overtime.

    Regular savings accounts often can’t even keep up with inflation.
    Crypto is sketchy and very volatile.
    Real estate also fluctuates and when you factor in interest and taxes isn’t Usually considered a great investment. Real estate agents will take a percentage of your homes value when you sell it.
    Private investment can have very high returns but is among the riskiest.

    It is also a bit ironic because Ben makes his money from his channel Teslanomics, app Tezlab, and has 2 Tesla Roadsters coming ($400k)! He has strong vested interest in Tesla succeeding.

  14. Agree on the approach, in that, normal people are no match for the power and speed of investment houses. Much of investing depends on where in life you are and your situation. It is much less about not owning $TSLA and more about being risk adverse in general.

  15. It's rigged for retail traders that want to get rich overnight. You can only rig the price short term. You're right that stock picking is difficult. Even hedgefunds underperform the market. It's easy to just buy the market passively, though. I don't know how you can disagree with that.

  16. Why I (Ben Sullins) don't invest? Because I'm a coward (can't stand the market up and down) and I can't see the big picture (long term).

  17. Honestly Ben, about once a month you make a completely idiotic video. This is one of them. But just hang in there, sometimes you are nails on a chalkboard to me but overall you’re doing a very good thing.

  18. But whos says this guy is an entrepreneur of any sorts anyhow. The way he thinks makes total sense for the typ of mind he has. This guy cant think outside a box. He is a linear thinker who needs security. Simple as that.

  19. Ben, ‘over the short-term, the stock market is a voting machine… a popularity contest. Over the long-term, the market is a weighing machine’ -Ben Graham

    Over the long-term, the value of Tesla will shine through and reward shareholders accordingly. As more factories are brought online and more models, etc, etc. “Rigged” and “trading algos” don’t matter if you’re buying an investment once (instead of day trading)

  20. Think about all the richest people in the world… Zuck, Gates, Bezos, Buffett…. they got that way by being an owner, not by holding forms of cash, not by loaning their money to others.

  21. Please read "Poor Charlies Almanack" by Charles Munger. In that book Munger explains that market volatility is not a measure of whether of a companies success. You need to invest in a company you believe in that has a "Moat" or a competitive advantage against its competitors.

    Real Estate is a great way to produce lasting income.

  22. Can't you place a limit order to buy stocks? that would solve your issue with trading. Anyway investing is a whole different thing, in a 10-20 years timeframe it does not matter if you bought a stock at 10$ or 10.01$.

  23. These stories may be bad for sort of day trading investor but not for long term buy and hold positions… And you can buy stocks from a good cheap brokerage account, try interactive brokers…

  24. Ben, I get the feeling that you got burned on an individual stock at some point, and do not want to buy one again. Seems you were too discouraged to reflect and learn, and instead came up with the idea that front running taints the whole prospect of investing in individual stocks.

    A few thoughts on this,

    #1 by far and away… we all living in a universe where concentrated influence is a factor in virtually all material things. That is, the very dynamic underlying your front running concerns, concentrated influence of the HFTs, and the influence of those with the most money to protect themselves from prosecution, IS ACTUALLY THE BIGGEST RISK TO BITCOIN AND TESLA.

    That is, just as we see all the FUD about Tesla in large part because about 10% of the world's economy will be turned utterly upside down if Tesla's mission succeeds, if Crypto/Bitcoin succeeds, massive amounts of concentrated influence, the concentrated influence of the banking systems of nation states and their alliances (including pretty much the entire banking system) will be turned utterly upside down.

    The US government, established financial players, and the same for nearly every country on earth, see Bitcoin as a threat to their turf, and there is no reason to think they will not act as aggressively as the front runners of stock trades… they already are! Bitcoin's largest thread is this existing currently established concentrated influence trying to squash Bitcoin- through trying to talk it down (i.e., it's just for terrorists and drug dealers) to enacting laws to undermine it. Very much like what's been going on with Tesla.

    #2 the amount that front running might effect an investment in Tesla is nil. The bid and ask on the stock is usually within a few pennies. If you bought 1,000 shares, or nearly a quarter of a million dollars of Tesla, such front running potentially might cost you $100 in transaction fees coming in and going out… possibly $200. If Tesla goes up 7 fold again in the next 7 years as they have in the past (which I've come to by doing fundamental analysis, same kind I used to buy Tesla in 2012), you're talking about roughly $1.2 million in gross profits… $100, $200, even $400 in transaction fees from crooked activity really going to steer your decision here?

    #3 I'm a little older than you, so perhaps this is just a luck/timing thing. In the mid to late '90s it was so widely publicized how the historical long-term returns of the stock market dwarfed those of any other investment vehicles, it was almost impossible not to be aware of this. From shaky mainstream media sources to Warren Buffett, the basic long-term realities were repeated all over the place. Stick with Buffett, read some articles, and if you like stick with index funds. You are young enough to have the decades work to your favor even if current valuations might be a bit high (maybe don't go all in with your savings at once to mitigate valuation risk).

    #4 Tesla is not so much a battle ground of longs and shorts as a battle ground of longs and people who are trying for various reasons to knee cap the company, with only the latter group so frequently willing to say anything (without regard to reality) to push their case. I very rarely see that behavior from any Tesla bulls. I can back my case up with data if you like, but, this is already an extremely long reply. Not kidding, data that reveals what is probably an unprecedented nature to the Tesla short position that calls into question whether it really has to do with the bulk of that short position being motivated by a belief that the stock is overvalued.

  25. I invest in Tesla Jumia and Beyond Meat, why? because it was the same thing when Amazon was 220, they told me is too expensive, bs, now is 1900, so now, I will invest in Tesla, and now is a good time. I buy on the dips, and do not sell, because this company will outgrow Toyota, how do I know, well just go out and rive a Tesla and drive a Toyota, is so simple, why? because there is just short propaganda, I just read article on Yahoo from analyst how Tesla does not make good margin on cars, I mean Tesla made like 20 percent on cars, when I google how others do, this comes up, I paste : As a general rule, new vehicle auto dealers have a net profit margin of 1-2% on new vehicle sales. It's pretty pitiful. Gross margins, however, run between 8 and 10% for most full-line automakers, and luxury cars often earn 10-15% margins. Depends on the vehicle, market conditions, etc. SO TESLA IS THE WINNER? WAY AHEAD OF THE COMPETITION

  26. haha, Telsa is too volatile but Crypto is safe? How did you ever get rich enough to own so many Teslas?! literally anything is less volatile than crypto.

  27. Love the content….two things….TSLA stock volatile…..Bitcoin is scary volatile…wouldn’t touch bitcoin with a 10 foot pole. Secondly….just personally……I don’t think I’d be driving my car South of the border these days….. Great content. Always very well produced and interesting. Thanks…..

  28. put your money where your mouth is, really contradicting to your comments in the video! sorry to say but Unsubscribed!

  29. If it's too volatile for you, put in a stop-loss order. It's a way to sell or buy when the stock reaches a certain price.

    I invest because Tesla is adding long term value to the world. Bitcoin is primarily used to launder money and buy LSD. It'll never be used as a currency. Organizations will (continue to) opt to create their own cryptocurrencies . Bitcoin will only be used on the black markets.

  30. So if you aren't interested in investing in general – why did you title this instead of just singling out TESLA ?? I stopped watching after around 1 minute. As for TESLANOMICS – it is NON TESLANOMICS – cos you really have not done a lot of research regarding the possibilities of the future of what TESLA is all about.

  31. Crazy Ben. Have you read about Ben Graham father of security analysis? Ben Graham said, “In the short term the market is a voting machine. In the long term it is a weighing machine.” what is the value? You can’t value crypto.

  32. Yes you have a cynical view. Logic shows over a hundred years it now takes 17 dollars to buy what 1 did 100 years before. 1 dollar in stock has grown to 400 over the same 100 years. The market rigged against you? NOT you have to quit trading. Buy off the financials and future outlook (a company with good economics at the right price)… rather than buying off optimism (wishful desired results). The market is there to serve you. Learn not to serve it. Then, it’s like shooting fish in a barrel. Little guy need to dummy up.

  33. Seeing this video was a bit of a shocker. It amazes me someone could have an in close understanding of Tesla and its leader and not throw in with the cause. Elon, in my view, is the most brilliant man alive and he heads into the strongest headwinds of the current "society" and stays resolutely on course. He produces the most advanced and well positioned products imaginable (actually not imaginable to most or someone else would have done them). My question is this: why would you not at least have 20 or a 100 shares in Tesla, since you support it in words, and benefit from its popularity in your activities.

  34. Using the stock photo of Elon taking a toke is a vote in favor of everyone who is trying to tank Tesla. It's known as taking up the enemy line and in professional public relations it is never done. If you watched the video, it was one toke – and he did say it didn't effect him and that he never uses the stuff. In this instance one might have considered the ethics of using the photo, and gone with something less damaging.

  35. I actually buy TSLA and BTC every month. Will be doing that for the next 2-5 years. Both are great long-term investments. And both will make the world a better place.

  36. Ben, I call BS on the reasons you are buying stock in Tesla. Please tell me if you think my understanding of your reasoning is off. If you are a long term investor and believe in the long term future of Tesla, then you should at least consider Tesla stock as a part of your long term investment portfolio. The reasons you have given for not investing in Tesla stock, primarily affect short term investing or high-frequency trading strategies. Ben, I did not expect a biased story like this from someone who generally takes a logical and scientific approach to decision making. Wow!

  37. You should invest in your area of competence. Judging by your videos, you spend a lot of time and effort and intellectual capital on this subject. It’s fair to say you are an expert in this field. You should invest. Volatility is not a problem if it has an upward trajectory.

  38. “The house WILL always win” in a ZERO SUM scenario… but the Stockmarket is NOT entirely zero sum. There is organic growth of the economy. You are confusing trading with investing. Crypto is just silly! Inherently a currency has to be stable. People put money on it precisely for the opposite, they want massive gains which is by definition UNSTABLE. Everyone’s pension is on the Stockmarket for a reason.

  39. Completely agree with you about index funds. Crypto… populism = identifying correct problems, but then offer false solutions that push your own agenda. What that guy said in your video has some truth to it, but Crypto as it currently stands is a false solution.

  40. Front running is illegal. That’s not not the markets work. No issue with your opinions bc their your opinions just don’t misrepresent how the markets work

  41. Time to sack up and load up on as many $TSLA October calls as your you tube money will buy you. If you really wanna show the channel you’re the man, leverage your house to buy even more on margin. Show them Ben, show them you ARE Teslanomics!!!

  42. Crypto can horizontally scale, if it takes off there will be crypto wars (already are). Otherwise the value of crypto will always be roughly the cost of mining, it's a competitive environment.

  43. I got some serious respect for Ben here. I always thought he was a bit of a fanboy, but mad respect. Crypto is the future, just like electric cars encounter a huge pushback every day, cryptos are in the same place. Investing in crypto is the smart play. Stock markets you're just a small fish in a VERY big pond ready to get eaten.

  44. Just delete this video man and maybe come out with an statement because you confuse trading for actually investing which are two different things you can do in the stock market. Also saying crypto is safe while it is extremely volatile is also probably not the best thing to say.
    Other than that… love your videos man. Keep it up

  45. I do agree with you. Elon’s actions are very unpredictable and since big oil are not gonna give up trying to get tesla broke anytime soon I think buying the stock is a game not a way to get financial security in the future like you said. Crypto currency is a game too though it’s to hard to tell if the stock is gonna plummet or sky rocket. nice vid loved it.

  46. This is one of the most important videos you have ever made Ben, great job. Disclosure: work in the crypto/blockchain industry, so naturally have a bias.

  47. As my grandpappy told my dad, there are newsstands on every corner, publishers come and go, literary degrees are no damn good, but they all use paperclips and pencils.

    If you stick with industrials and energy, it's not sexy. But living off the dividends from the age of 40 until they plant you? I don't know any other means of being secure that has yet to go wrong.

  48. Respectfully, you are passing on what could be the growth stock of the century and then investing in real estate and bitcoin. Real estate is a liability (taxes, insurance, upkeep) and can become virtually worthless for decades if the economic and social conditions for the region you invested in tank. Bitcoin is volatile and subject to most of manipulation stocks are in the form of FUD and outright rigging by exchanges, whales and mining equipment manufacturers.
    Where as autonomous electric vehicles will be a growth industry for the foreseeable future even if the economy and auto industry tank because its the start of a shift that is just beginning and until that shift is over there will be growth and Tesla is positioned to lead this shift till the rest of the industry catches up if it does.

  49. Dude, Ben. You make no sense on this one. Sorry, I subscribe to your channel and also to OLF, but the ideas in this video are tinfoil hat.

    Cryptocurrency is not an investment. It is by definition speculation. You are doing currency speculation which is defined as buying something on the hope that someone will pay more it later. Investing, by contrast, is buying something based on the idea that the underlying business is a sound profit generator.
    And in answer to your last musing, yes, you are incredibly cynical, no you are not wrong that Wall Street are crooks, but your conclusion is also not correct in my opinion.

    Glad you at least mentioned index funds, but given the context of the video, I think it's not enough.
    IMHO, you're convoluting high-frequency stock speculation, currency speculation and long term index fund investing as if they are all similar things in this video. That is not a good premise from which to discuss Tesla stock.

    (I am long on TSLA)

  50. The most disappointing and wrong headed video you've ever done. Others have already made my points for me, so I won't belabor it here.

  51. Clickbait title is disappointing too. Definitely should have been titled "why I'm not an investor in the stock market"

  52. Have to agree to the people here saying that you are confusing investing and trading. I'm not so sure about calling Bitcoin a super low risk alternative…. I hope you follow up this video to clear some things up

  53. Ben is very smart, but the fact that he decided to own 100% equity in his house shows that he's not very good at capital allocation (just like 99.9% of people)

  54. I feel like you're referring to day trading. That's a different animal than investing. I personally find good companies to invest in for 3 to 5 or maybe ten years

  55. You miss the beauty of how Tesla stock behaves. It goes up and down based on tweets, meaningless news nuggets and things TV personalities say. I've bought it 17 times in the last 18 months whenever it goes down for a dumb reason, then you just wait a few days, weeks or months for the next crazy tweet…it goes up and you sell. It's one of the most predictable stocks out there. Of course its risky and not a sound overall strategy…but it's worked every time.

  56. Tesla is a welfare queen. The fattest, on the block. The real investors in Tesla are the american tax payers. Thanks Obama Huessein.

  57. I agree 100% with not investing in Tesla. Are electric cars the future? Maybe. Sure. Whatever. Were solar stocks the future for electricity 10 yrs ago? Yep. Sure. Whatever. Look at their stocks. Down like 90%. Doesn't matter what the future is. When you buy a stock the only long term thing that matters is PROFITS. The auto industry is just WAY too competitive.

  58. this video is even worse than i thought it would be.

    but really…they have given you 500k and counting and you cant throw a few bones in the pot for the fun of it?

    throw in some btc to remove every last shred of credibility

    thank god for the mention of index funds

    bone app the teeth

  59. ….but why doesnt he just presell the roadsters and then buy more btc with that as its clearly going up to 100,000

  60. Smart guy but confused on investing…T has the potential to be a trillion dollar company by 2030. Go long on T.

  61. I understand your argument when comparing stocks with crypto.

    Bitcoin is really human-safety for trading it. But there's no system yet that trades Bitcoin for another currency. Also there's no value attached to Bitcoin, only the trust in the coin itself.

    If you think that in a long term Bitcoin is going to be a think, for sure is a safe investment. You do not depend on anything but your wallet.

  62. The system is t set up for retail investors to get cheated. If an institution makes .1 cents on your trade, you may have an issue with their ability to make money in a way you can’t, but this should have no bearing on investing in a stock like TSLA or others. Are you trying to buy TSLA at 230 and sell it at 230.012 or sell it at 2330? Are you not going to buy food because a corporation can buy food cheaper in larger quantities? I could go on but your logic in this video is beyond flawed. Your other videos are great, stay away from investment advice, it’s not your Forte. I’ve been a professional investor for 20 years and it’s a long term game. I’ll check in again. in 3-5 years when TSLA is one of the largest companies in the world by Market cap and read your video entitled “Opps I was wrong”. Otherwise Great channel and I remain a fan.

  63. Is everyone here kidding? Wealthy Oil companies and ICE car makers are piling mountains of money into shorting Tesla to drag down the price and harm it or at least slow it down. This isn't bulls vs bears, it's a full on attack by the people destined to be hurt by disruption. Main stream Media is aiding this effort too. I've watched a few investment shows talking about Tesla and they are completely against the company in all kinds of stupid ways easily picked apart by common sense questions. Guess we know who pay their salaries.

  64. Doesn't matter to me that you're not good at investing money. Keep up the Tesla videos the stock is going to the moooon!

  65. Is the stock market rigged against the "little man"? Yes.
    Does it matter? No.
    Let the algos make 1c per share. Over the Long term it doesn't matter.
    Is the BTC market rigged? Yes.
    But btc is not investing it is speculation. There is no cash flow, you hope for someone to pay more for your btc.
    Can't compare ? and ?.

  66. This video comes down to selling not long term Investment I dont disagree but am wondering why it wasnt titled differently.

  67. Hi Ben, thanks for sharing your view of investing. Tesla for the foreseeable future has an economic moat: Their supercharger network. Big oil shorted TSLA down to 185 and as of the date I write this is still under its $273 two year 200 day MA.

  68. I think if you believe in the company , you should invest and hold long. I think you would see a great return in 5 years or so. Tesla has nearly unlimited long term potential.

  69. You have a tendency to tunnel vision. BTC has only been around 10 years. 10 years is not nearly enough to prove as the future of money. In addition, BTC whales are just shorting on you and buying actual physical assets such as real estate, gold, and arable land. BTC whales will ALWAYS control the game. They decide what the price of bitcoin at any point in time. Same for Tesla. Automaker losing money should never be on the same evaluation as Honda.

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