Update – Apple and Tesla in the News: Stock-Split: Think Investing in Stock for 2021.

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.

Update

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.

Both stocks instantaneously yo-yo’ed as a result of the announcement and investors’ rush to buy. Both stocks now trade at $127-128 (Apple) and $722-726 (Tesla).

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.

Disclaimer

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.

Personal Experience

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.

. . .

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.

4 thoughts

  1. Thanks for your comment Shelley DS. I love your contribution.

    A year-on-year comparison is presently not possible nor available because the stock split occurred in August 2020; barely six months ago. We could look at a 5-year trend/comparison, but that won’t give an accurate indicator and we would not be comparing apples-to-apples because both 1-year and 5-years traded at the pre-split dollars.
    Also, true that “If a president sneezes and the stocks rally, it doesn’t mean it will be like that for long or that you missed the window to invest.” But, the point of my blog is to visualize the stock price increase, within the short time, and for readers to be motivated to compare, and probably choose, investing to savings. Past performance is never a predictor of future performance. Yet, we still rely on trends/comparisons for decision-making to either buy or sell, right? True also that both savings (short-term) and investing (long-term) serve different purposes, and both might be needed in our lives. But again, the post was not meant to “advocate” for Apple or Tesla, or both, but to encourage readers to consider investing in 2021 if not already being done. If I wasn’t clear in expressing that, I hope that this my response clarifies it.
    Thanks – love the interaction.

    Liked by 1 person

  2. Thanks for sharing this! I think anyone who is looking to invest in these stocks should definitely look at a year on year comparison at the minimum, and then a 5 year trend. It’s really important to know the direction the stock is headed at as daily fluctuations can give off the wrong impression. Also, like you highlighted, stocks tend to react to any major economic events or tweets from political leaders. If a president sneezes and the stocks rally, it doesn’t mean it will be like that for long or that you missed the window to invest.

    Liked by 1 person

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