I started a position with Tesla in late October last year.
For a good two months before that, Tesla share price was hovering steadily at around US$300 per share.
Then it dived suddenly in early October before regaining some support at around US$225.
That’s when I entered to buy some Tesla shares and hoping for a quick rebound.
But as you can see from the chart, that was not to be.
It rested at US$225 for a while before it went down again to about $180 to obtain another support level.
The worse was yet to come … then in early Dec, it started to decline sharply and eventually reached the bottom at $108 just after the new year holiday. OMG !!!!
As the share price declined, I bought at several price points – $170, $140 and $120.
The sharp drop in Tesla share price, almost halved in just 4 weeks, really shocked me !
At that moment, I was about to lose hope.
I was thinking very hard whether I should buy again at $110 or just simply give up … which I did.
Although my exposure was relatively small, it was still painful to see your investment shrunk so quickly and brutally.
However, when it seemed that everything was so gloom and doom, it started climbing up. And amazingly within a month, i.e. 4 weeks, it recovered all the ground it lost in Dec last year.
Surprised surprised !
I could have made some good money if I had held on to the shares while I watched it climbed. However, I didn’t.
I took small profits along the way. Though I still hold on to some Tesla shares, it is a very small stake compared to that in early Jan.
What a roller coaster ride with Tesla !
It was fun, it was thrilled … but thank you, I think I would rather not have that.
I cannot imagine what if I had hold a huge position on Tesla in late October. I think I would have sleepless nights.
And if I were to fund it with margin, I think I would panic. That why people said don’t borrow money to invest in stocks.
Reflecting on this experience, I appreciate our Singapore STI stocks more … though many say that ours is a boring market but it can be rewarding in its own way.
Yes, it didn’t gain as much as US or HK in Jan 2023 but when these two markets were free-falling last year, our STI was holding on to much of its ground. You can’t have the cake and eat it.
Last Friday, STI ETF declared its half yearly dividend of 6 cents. Based on the current price of STI ETF, the yield is 3.5% (tax free!). It is quite a decent yield considering that it is an ETF and it can reward investors with capital appreciation too.
It may pale in comparison to some of T-bills recently but unlike T-bills, it offers other upside and there is no end date to this yield.
Another local ETF that I like is Lion Phil S-Reit ETF.
It declared dividends in early Jan, dishing out a 5% dividend yield (tax free).
These 2 ETFs are my go-to ETF whenever I have spare cash or when I see a black swan event but not sure what to buy.
They have helped me to diversify the risk from a single company investment. And so far they have been rewarding me well too through dividend and capital appreciation
If you are like me who think that a roller coaster ride is too much for your heart to take, you can consider investing in Singapore market and these two ETFs can be good starting point.
Have a great investment week ahead folks.
With regards,
Warriortan
Invest For Yourself 