Returns from investing in a Tesla car vs Tesla stock

Let me start off by saying this: I don’t think it’s a good idea to dump all your money into Tesla stock. I personally don’t own any, other than the market cap weighted amount inside of my US stock market index funds. With hindsight, of course, it would be a great idea to go back in time and invest in Tesla stock, but with hindsight I would be a bitcoin billionaire drowning in a swimming pool full of hookers and blow. But we can’t expect the same thing to happen from this point going forward.‎

THAT SAID, I think this stark contrast illustrates a valuable point about assets vs liabilities. Cars are liabilities because they cost money to maintain and plummet in value. Stocks are an asset because they pay dividends and go up in value. Over the last 8 years, all that money from car buyers shelling out $77,000 a pop for a Tesla was being funneled into the value of the stock and back to the Tesla shareholders. (The current share price obviously isn’t a reflection of just past sales, but more so future expectations, but you get the idea).‎

Going forward, where do you plan to direct most of your income? Buying assets or liabilities?‎

I have a bit of an announcement too! Over 1,800 of you have taken my “How to Build Wealth by Investing in Index Funds” course. The reviews have blown me away, with 123 learners leaving a review and 122 of them have rated it 5 stars. (The last one was a 3 star review which basically said it’s the same information I provide on my instagram… which is true! There are no secrets I’ve been waiting to trick you into buying). ‎

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.‎

-Jeremy‎

via Instagram

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How should I invest with my partner?

I wouldn’t call this an “optimal” investing plan. Notably, Valerie and Valentino decided to invest in a joint brokerage account, not individual Roth IRAs. Maybe

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Jeremy Circle

Hi, I’m Jeremy! I retired at 36 and currently have a net worth of over $4 million. 

Personal Finance Club is here to give simple, unbiased information on how to win with money and become a multi-millionaire!