Stocks should be bought cheaply and sold at a high price to make a profit. Therefore, it is said that timing—specifically, the timing of buying low and the timing of selling high—is a key factor. However, the issue is that I can’t predict the timing. It’s similar to how we can’t know what the weather will be like a year from now in our area. It’s wise to assume that the best approach is to acknowledge our uncertainty about timing. Attempting to time the market is a common trap for stock investors. Consider this: if you could know the timing, you would be the wealthiest person in the world. The advantage of long-term investing is developing the ability to identify stocks that are likely to appreciate over time, despite the fluctuations in stock prices, and investing in their value. The choice is yours. - Joseph’s “just my thoughts”
Tesla earns revenue through car sales, but its real profits come from other sources. Although Hyundai-Kia Motors sells more cars annually than Tesla, it does not have the same profit structure, which is unique to Tesla. Tesla capitalizes on environmental assets by selling carbon credits each year. While the company experiences overall losses in car sales, the sale of these carbon credits results in surplus income, positively affecting its stock price. Traditional automakers contribute to Tesla’s profitability by purchasing cars and paying fines for carbon emissions. This dynamic is also a key reason why Tesla establishes operations in regions with strict pollution regulations. - Joseph’s “just my thoughts”