Apple and Tesla in the News: Stock-Split
— Read on think-talk.org/2020/08/31/apple-and-tesla-in-the-news-stock-split/
Where would your stock (or finances) be if you had invested in the above stocks in August of 2020?! 🤔
Choose 2021 to be money-smart and consider investing in stocks rather than stashing your monies in a savings account.
Apple and Tesla were trading at slightly higher than $500 and $2,000 respectively before the split. Apple’s stock split was a 4-for-1, while Tesla’s was a 5-for-1. With the split, both became a $125- and $400-stock respectively.
Apple’s meagre increase is still better that what your money could have gotten from your bank in a year. And I hope that Tesla’s impressive increase was vivid to you.
Please note that I am not a financial advisor and recommend that you seek professional advice.
If you decide to invest in stock, please consider your risk tolerance which is your “ability to psychologically endure the potential of losing money on an investment.” Of course, your “risk tolerance can change throughout your life and determines what type of investments you are likely to make.”
While older folks (baby boomers and Gen Xers) are generally risk averse, youngsters (Gen Yers & Zers) tend to have higher risk tolerances; especially those who have jobs and no family responsibilities yet. Specifically, there are a few exceptions to this.
Nonetheless, do your research and seek professional advice.
This post is based on personal experience. I invested in various stocks in my twenties. All stocks are paying huge dividends to-date. When I migrated, I also invested but cashed out sooner and for a long time didn’t bother. I have since gotten back to investing and the yields are better than bank savings. The key is to invest regularly and hold for the long haul so that you can benefit from the dollar cost averaging.
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There are several investment boutiques now available that you can even purchase a fraction of any stock. Read my previous article above to get a few of the list.
Designate an amount that you’re comfortable with and be consistent. Better to have it on automatic withdrawal so you don’t have to worry about it and relax and watch it grow. p.s. Refrain from watching it hourly or daily; simply invest and forget it.
What are your thoughts on this? Do you have any suggestions/advice that others can benefit from, please add them in the comments.
Tea-juice-and-water Cheers to a New Financially-Smart you in 2021.