Tesla Inc. (TSLA) is the most undervalued AI play on the planet. In fact, I believe Musk makes a meaningful pivot into AI very shortly, observes Keith Fitz-Gerald, editor of 5 With Fitz.
Meanwhile, Unka Elon’s Q2 deliveries report was just released and the company beat estimates as price cuts boosted sales. Good. This’ll probably be the last of the “bad” news for a while.
Tesla Inc. (TSLA)
I hope you’ve been buying. The stock has returned nearly 50% since April when shares were around $140 and I told you to get on board. It's now trading at $209 and change as I type.
(Editor’s Note: Keith Fitz-Gerald is speaking at the 2024 MoneyShow/TradersEXPO Orlando, which runs Oct. 17-19. Click HERE to register)
To be fair, TSLA is down nearly 40% year-to-date, but so what. Tesla stock has returned 1,308.71% over the past five years versus 101.38% from the SPDR S&P 500 ETF trust (SPY).
Meanwhile, I am often asked “What do I do with XYZ?” – usually when folks have purchased something on a whim or as a result of clickbait masquerading as investing research. And usually when the stock in question has lost ‘em a lot of money.
My answer is always the same: Mistakes are tuition. So, it’s important that you don’t beat yourself up too badly. We all make ‘em from time to time, including me. What you want to focus on is moving forward.
The first question to ask yourself is whether or not the reasons you bought something are still valid. If so, then there is every reason to wait it out. That’s why, for example, investing greats Warren Buffett and Ron Baron don’t flit from stock to stock and why I suggest you don’t, either.
The second question to ask yourself is whether there is an alternative investing choice that can help you make up lost ground. If so, can you put that money into another company, fund, or investment that potentially offers a faster path to profitability, more stability, or even the opportunity to reinvest via dividends, which is almost always a great idea. If so, then making a switch could be the better choice.
Keep it stupid simple.
