1. Investing in Tesla last year is like getting crash course in a decade of growth investing, tech investing, options, diversification, and risk management all rolled into about 12 months.

I like to think of it as a MBA, but vastly more useful and enriching.

A thread
2. Diversification -

The famous Buffet quote "Diversification is protection against ignorance. It makes little sense if you know what you're doing"

This didn't ring true viscerally until I understood how much money you can make with concentrated bets on your best ideas.
3. Around May of last year, I realized what a value Tesla the stock was becoming and was buying almost every day.

The market cap of 30-40 billion for a company that was innovating and finally executing and scaling at it's pace just didn't make sense.
4. I broke most investing rules (don't exceed 10% of your portfolio) and quickly allocated 33% of our net worth on Tesla.

This paid off handsomely, but in hindsight, I should have allocated even more. (60% would have been justified, based on my research and conviction level)
5. Risk Management -

The idea of spreading your bets on diversification is vastly over-rated.

I had bio-techs in my portfolio, ones that were still awaiting P3 results. I had ARKK, ARKG, SQ, and NVDA. All stocks that I understand and was proud to own.
6. However, I ended up getting 2x and 3x on those ideas, and getting 10x on Tesla in the last 12 months alone.

I had no idea how quickly the market would turn around on Tesla, but it was clear to me and many others it was only a matter of time before this would happen.
7. In retrospect, I had human biases of loss aversion (selling my losers, selling my lottery picks before one of them hit a successful p3 trial) and also a tendency for maximal-ism instead of minimal-ism in portfolio construction.

Owning more names was fun.
8. But owning more names is NOT as profitable as concentrating on names you understand well and firmly believe in.

Sometimes, making money is boring.
9. I believe great ideas only come a few times a decade. You only stumble across a few truly special, generational companies, led by generational talent.

Apple was that company for me in 2009-2011 in which I was an investor.

Tesla is that company for me from 2016 to now.
10. Apple's secret sauce was they understand arts and humanities and combined it with technology in a way no other company could. They nailed design and technology and vertically software and hardware in way that was a competitive advantage, not a handi-cap.
11. Tesla's secrets are too many to mention, but the main fundamental one is that they are tackling a problem that no one else was willing to tackle on a large scale, and in due time, will be rewarded in a way no other company has ever been rewarded in history.
12. I have invested in and looked plenty of other companies in the last decade, but no other companies other than Apple and Tesla that I truly grokked.
13. My advice to anyone who wants to start investing and build long term wealth:

1. Do your own research. Truly understand what you own and build conviction.

2. Concrete your money on your best ideas. They don't come very often so make them count.

3. Hold for the long term.
14. Shout out to the long term investors who went ALL IN on TSLA from the get go. @jasondebolt @AlternateJones @stevenmarkryan @VintageHead @hikingskiing @SawyerMerritt
You can follow @buckwildwang.
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