Elon Musk’s purchase of Twitter and subsequent sale of $40 billion worth of Tesla (TSLA) stock to fund the deal and keep Twitter solvent has sparked a lot of controversy. There’s been a lot of talk about this situation but one thing that no one seems to be talking about, especially liberals, is how this represents one of the largest transfers of wealth by the wealthiest people in the world, mostly to retail in the hands of stock investors. Institutional investors tend to shy away from TSLA (only 43.5% of the stock is held by institutions). For long-term retail investors in Tesla, this is a once-in-a-lifetime buying opportunity.
Over the past 5 years I’ve spent $85,000 on solar panels, installed 7 heat pumps, installed another 12kw of off grid solar panels on my wife’s house, and purchased a Electric Bolt 1/2 Price New. At this point, I can say that I am personally weaned from my fossil fuel addiction, despite the high overall cost of doing so. This year, I’ve been looking for other ways to invest my money to move humanity toward a sustainable future, and decided investing in Tesla was a good choice. Since I made this investment, my stock is down over 46% year to date. When this happened, I doubled down, and while trying to pay off margin calls (don’t trade on margin), I moved all my retirement funds from mutual funds to TSLA stocks in traditional IRAs and Roth IRAs. One of the things that really bothers me about investing in mutual funds is that most index and mid-cap funds invest in many businesses that contribute significantly to global warming and try to hinder progress in sustainable energy. I learned a valuable lesson that I should never margin trade a 46% drop in TSLA stock, but instead of getting upset about the drop, I doubled my investment in TSLA. I plan to invest for 10-20 years, so it doesn’t matter if I buy the stock at $300 or $156. This is not investment advice, it’s just my personal practice.
Some of my liberal friends treat Musk extremely badly. I ask them to point to a living person who has done more to move humanity toward sustainable energy than he did, but I’ve never heard a good response to that. For all his faults, what he has accomplished is astounding and I am sure no matter how much stock he sells, he will be able to earn it back in the future. It amazes me that no one is really talking about what a charitable act he is by selling so much at such a low price that the stock price is even lower for retail investors. Warren Buffett once said that you can think of such buying opportunities as a punch card that you get throughout your life, you get hit so few times, you have to be aware of when these opportunities arise.
For those politicians who constantly mock the capitalist system for accumulating vast wealth through a few people, they should be pleased that Elon Musk’s fortune is rapidly being transferred from Tesla retail investors. Hallelujah.