Friday, March 11, 2016

Recent Sale

March 7, 2016: Sold out of Tesla

Feel free to share where I can improve/if there is anything else you would like to know in future posts.

Overview

Prior to starting this blog I had began investing into Tesla in my Loyal3 Account.  I got excited as this was one of their new offerings.  I began to invest here as I saw how low the price had gone for this stock and I absolutely love seeing this car.  Another impulse buy....



1 Year Return

Currently on March 11th TSLA trades at $207.50.  The one year return for the stock is 7.02% and my first monthly investment purchase price was at $175.75.  This got me .2845 shares for $50.
Image from: Google Finance


Why I Invested?

I invested in TSLA because of the growth prospects and because of the fact that I love the car. Moreover, from scanning their financials I saw that the growth blew out the competition.


Tesla Annual Report 2015




Why I am selling?

As you know, one of my goals when I decided to start this blog was to know what I am invested in and to remove the clutter.  Although I am a huge fan of the car, looking further into the financials, I do not like the fact that the company is still operating at a loss.  It's cash flow from operating activities has been negative since 2013.  I am glad I got in at the price I did because I was able to get in right before the market push upwards.  My position in TSLA was immaterial, and I was not convinced that I should continue to invest in it.  I see other opportunities for me to build a strong core portfolio, and decided to close this tiny position.  I would not rule out owning TSLA in the future, but at this time it is critical for me to stick to my goals and create a strong core portfolio.


Return Calculation

Over the course of the month, I made an easy $21.45 dollars.  I plan to reinvest the proceeds into my future Loyal3 purchases.





Conclusion

The sale does not reduce my yearly dividend income.  For the size of my investment, it was a good return.  However, I continue to remove growth stocks that I have gains on in order to reinvest them into dividend paying companies.

Do you own Tesla?  Would you ever own this stock?  Is there any car company you own or would consider owning?

Please comment below and thank you for stopping by. Cheers!




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