Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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I am a shareholder in Tesla, because it is something I really believe in, and it had a great year. At the moment all the news coming out has been positive and the price has really just been heading up.
The one thing however that I got used to with the American Stock Market, from watching it for many years, is that prices go up and down much more quickly than in South Africa. Shares are not traded as much in South Africa and many of them are held by the same companies for many years whereas, if you look at the statistics in America, basically the people who own for example Apple shares at the beginning of the year are completely different to the people who own it at the end of the year.
What I have seen is that basically every single share over one or two years seems to go up or down quite dramatically and I guess the lesson that I am trying to learn from that is not to buy at the top. In other words, if I see the price going up I should not buy then – let me wait for it to come down. They tend to all come down and we have seen that, in particular with Apple over the years.
Yes, on the long-term the trend has been all up, but there have been opportunities, even with massive and steady companies like Apple to buy the shares at a tremendous discount at certain times only to watch them go tumbling down. I remember a few months ago when Apple was trading at $93 Kevin O’Leary, one of the presenters of Shark Tank on CNBC, rubbished the share. He said that he would not be a buyer of the share until it got to about $80/$85 and it was definitely going down. It must have been at the exact time he said that that it reversed, turned around and went straight up to $140 – proving that no matter how much money, experience and knowledge you have, you are not necessarily going to be right (my calls on Facebook have proved to be spectacularly wrong) and that even a mature company like Apple, who has pretty consistent sales year after year, can see enormous fluctuations during the year of its share price. Having said that, I am not a shareholder of Apple and I would not buy at the current price – because I am sure there will be a time again that you will get it back to $100 or so and then, and depending on what is happening in the market, it may be a better deal.
Posted by Michael de Broglio on Friday 28-Apr-17
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Comments
Brenda van den Bergh said:
on Friday 26-May-17 05:39 PM
I have taken somewhat of an interest in the market and i at the moment i am learning the ins and outs of what happens with shares in a few company's and keeping an eye on the markets. I do have help, so i am not in anyway trying to make myself look like i know what i am doing hee hee. But when the time is right and after getting a good feel of whats happening I will start making investments.
Jadine Richards said:
on Friday 12-May-17 02:25 PM
I agree with this analysis. Smart, steady thinking and watching, always comes out on top.
Melissa said:
on Thursday 04-May-17 08:44 AM
I must be honest, I know nothing about investing in shares, I will be to nervous to invest my money in shares, but one will have to take a chance and see how things turns out for you
tersia said:
on Thursday 04-May-17 08:44 AM
This is very interesting to know. I am pretty much clueless when it comes to shares, but it seems like you really have to know your story before investing your money just anymore you feel like. It was definitely a good choice to invest with Tesla, congratulations on that one.
Jolene said:
on Wednesday 03-May-17 01:36 PM
I would be a nervous wreck if I had shares, all the ups and downs will drive me crazy. I guess if you are well informed and know which shares to invest in it will be a different story.
Zindy said:
on Wednesday 03-May-17 01:27 PM
People who have shares in Tesla and are probably very happy right now and people who wanted to invest are kicking themselves.
Melissa van Tellingen said:
on Wednesday 03-May-17 01:17 PM
I'm so clueless when it comes to investing I wouldn't know when to start. Someday when I have enough money to start investing I would def ask for your help and your opinion.
Nikita said:
on Wednesday 03-May-17 01:14 PM
Tesla can only get better. A very smart decision to invest your money here especially considering how our resources are running out and eventually solar power etc will be all we have left to turn to.
Suzanne said:
on Wednesday 03-May-17 01:14 PM
I have never thought of it this way - this business is way too risky for me. It is awesome news for Tesla and everyone owning shares, good buy.
Thabitha said:
on Wednesday 03-May-17 01:11 PM
When comes to investing you learn every day and it is better if you understand everything about how and when is the right time to invest but since there is no consistency in the markets then sometime you just need to take chance.
Jadine said:
on Wednesday 03-May-17 01:05 PM
Shares are not always going to remain as what they were in the beginning. It is always a risk investing or buying shares not knowing how the next month it would be economically.
Bianca said:
on Wednesday 03-May-17 01:05 PM
Tesla hasn't yet hit the South African market as much as it seems to have in the USA. It appears that the shares are certainly making a great profit and that it is an overall success. Us as South Africans can be extremely proud of Elon Musk as he is one of our very own and has made an absolute success of himself.
patrick said:
on Wednesday 03-May-17 01:04 PM
these shows how important it is to know the brand that you are investing in. Reseach and knowledge of a brand are very important when it comes to shares. while Apple looked to be a good brand when it came in, markets shows that it is being eroded little bit by little bit. one should be mistaken, it has good products which will last for good but as long as they don't free their hold of apple store, ordinary people will find it hard to deal with them . ihope they don't do a mistake which was done by Nokia
Brenda Du Toit said:
on Wednesday 03-May-17 01:03 PM
Well done to them.The whole world always has a close eye on this stock market.nice article to read
brumilde said:
on Wednesday 03-May-17 12:40 PM
Yeah for tesla, still havent been in one of the cars... the brand is not yet so big in SA, but i am sure htat there is always room for improvement. but with SA junk status hmmm um maybe not.nice article to read. very informative
Liz said:
on Tuesday 02-May-17 04:59 PM
The stock market is volatile, shares can plummet without warning and as a result of many external factors, however, I think by doing one's research and taking a bit of a risk it can be very financially rewarding to buy shares on the American stock market.
Michelle said:
on Tuesday 02-May-17 03:46 PM
I think it is a nice feeling to have shares in a big company and they are doing well. To know you have made the right decision. To have shares in international companies will obviously be the smarter way to go. According to me places in South Africa is just going no where.
Daniella said:
on Tuesday 02-May-17 02:27 PM
The American stock market i'm sure has a high risk but high rewards. If you smart about what you invest in you can get amazing returns.
Lourien said:
on Tuesday 02-May-17 10:53 AM
Shares are always going up and down, and even a small change in the market can have a dramatic impact on your shares. If you don't know what you are doing, I believe its better to rather stay away from buying any as they are unpredictable.
Lucretia said:
on Friday 28-Apr-17 05:54 PM
I find the share market exciting at times, however, until one has enough disposable income to play with, which i dont, it would be scary to take on the market because you cannot afford to lose money that you dont really have.
Joyce said:
on Friday 28-Apr-17 05:51 PM
sounds like Tesla is doing well this year, well done to them.
Joyce said:
on Friday 28-Apr-17 05:49 PM
sounds like Tesla is doing well this, well done to them.
Prishani said:
on Friday 28-Apr-17 05:19 PM
The American stock market must be hectic! The whole world always has a close eye on this stock market. With ownership, and prices increasing and decreasing as rapidly as they do, I am sure that if you are going to invest/ buy shares you have to keep a close watch and also no doubt be well informed on what’s going on in the market, also not forgetting that many factors big and small have to be taken into account.
Jessica Apfel said:
on Friday 28-Apr-17 08:37 AM
America stock must be so very difficult to judge, particularly with such a volatile political climate. Who knows what Trump may change next? As your previous blog denotes, he is easily capable of manipulating any judicial system - I am not sure if it would have a significantly detrimental effect on the buyer's market but have seen in SA how political instability directly translates into a lack of investor's confidence - a 'domino-type' effect then on the markets!
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
