S&P 500 ^GSPC 5,304.72 +0.70%
Tesla TSLA $179.24 +3.17%
Meta META $478.22 +2.67%
Nvidia NVDA $1,064.69 +2.57%
Apple AAPL $189.98 +1.66%
Microsoft MSFT $430.16 +0.74%
Alphabet GOOG $176.33 +0.73%
Amazon AMZN $180.75 -0.17%

Even the biggest bull is already selling $TSLA+3.2% stock 🥱

Cathie Wood has decided to sell $98+3.2% million worth of Tesla $TSLA+3.2% stock due to the potential market volatility that the Fed's decision is likely to cause.

TSLA

Tesla

TSLA
$179.24 $5.50 +3.17%
Capital Structure
Market Cap
571.6B
Enterpr. Val.
570.1B
Valuation
P/E
45.8
P/S
6.0
Dividends
Yield
-
Payout
-

I still don't understand how anyone can look up to her. Okay, I'll still take the fact that she gave high price targets, everyone misses it sometimes. But to sell stocks in one event? Even if the Fed did cause market volatility, isn't the basis of any long-term investor to avoid short-term trends and events and look out over the horizon of the next few years? So if she trusts her own predictions, why is she selling?

What about you and Tesla, taking profits ahead of the Fed meeting?


That Tesla is a roller coaster again... :)

Let's see, I don't follow Cathie Wood much and I don't follow her, anyway today I think all the log will make money, CPI is good according to reports and the index is already flying🚀

Long you always make money, short-term trades are speculation with unclear results 🤷‍♂️

Agreed. Sometimes you wait longer, but it's better than losing it with a short which is irreversible many times.

I was just buying call options yesterday...

Feel free to write in Czech 😂 I am an average investor, the terms call options and the like mean nothing to me. Is it on the upside, on the downside? 😂

Yeah, sorry it's for growth. But I already sold it today.

Well... how much of the $TSLA+3.2% position did she sell?

By the way, she also sold $META+2.7% worth $41 million and then a chunk of $NVDA+2.6% and other positions.

I don't want to lie now, but I think it's about 10% of the position.

So it's mostly negligible. 🤷‍♂️

Well, it's risk management. Simply put, regardless of the long term price objective, holding is a risk and that risk can be assigned a certain proportion of the portfolio. And if the stock grows a lot then that proportion is exceeded and if you don't reassess the risk to a lower proportion then some of the stock has to be sold. (the same is true if the stock doesn't grow but the risk is reassessed to a higher proportion) and specifically with Tesla at Ark Invest they seem to have assessed that both the stock and the risk are growing. It gets complicated by different risks and price targets for different periods but I think this is the principle. It's not a sell-off but just risk management. That's why the stock doesn't react by falling either. But on the curve of the 12th, on the contrary, it's an upward surge in the second half of trading.

Ark Invest is holding Tesla as a long term investment with a target horizon of 5+ years I think. So short term risk fluctuations should not have that much impact on the allocation in the portfolio. If Ark really believes in the long term potential of Tesla, why sell just for a temporary increase in risk? Selling a portion of the position after a sharp rise in the stock only increases the cost of the portfolio (transaction fees) and reduces the potential return on the holding if the stock's rise continues. Isn't it better to hold and enjoy the growth without additional fees?

Portfolio rebalancing and risk reassessment should occur at regular intervals, not after every significant move in one particular stock. This could lead to over-trading and underperformance. Moreover, as recently as April (I think) Tesla stock was a buy.

Well, that's true. Ark investors probably have no choice but to accept that Cathi's practices are "a bit unusual". But that's no reason not to trust her rationale for the deals, and I don't know of a fund that's more transparent. What other fund publishes all its trades with a one-day delay?

I set a stop-loss there yesterday. If it goes up, which I think it just might, I'll be happy. Profit is assured.

I think I can still understand that. But to be swayed by price targets and then sell at the slightest sign of a drop when it's a long term bet, I don't really understand Wood.

It's probably just a portfolio rebalancing, but it doesn't fit her narrative at all. 😁

I don't even hold them for sure 😂 So selling a certain portion at a profit I understand, but then I don't understand the price targets. Why isn't he selling at his dream levels and panicking about the Fed?

No neasi 😀 So much for trusting Mrs Wood and their goals.