Many hyper-growth assets were down by 33% to 86% last year. Still, the long-term data indicates that leveraged ETFs and cryptocurrencies may be the future of investing.
In order to participate in hyper-growth trends, while protecting client capital, ETF PM employs active risk controls. This enables us to make adjustments if a position does not perform as expected. Having a proven sell discipline is the first step in effective portfolio management.
While Tesla (TSLA) was the top-performing mega-cap asset over the trailing three and 10-year periods, we were forced to hedge our exposure repeatedly. Elon Musk has been extremely busy with revolutionary innovation through a wide range of companies. Tesla’s advancements in self-driving cars, utility-scale batteries, and general-purpose robots are all incredibly captivating and inspiring.
However, in 2022, we were most impressed by SpaceX’s Starlink broadband internet network. Starlink’s satellite-antenna terminals have proven to be critical in Ukraine’s war effort, and Musk reported around 100 Starlinks are now active in Iran. Is Elon Musk a real-life Tony Stark?
As we explain in the Investable Benchmarks book (third edition), “perhaps each person should own the technology matrix and have geniuses like Elon Musk working for them as much as possible.” At ETF PM, we believe investors in Tesla will continue to be well-rewarded long-term.
ETF PM has long positions in Tesla (TSLA).
Prior notes on Tesla: 12/22, 9/22, 10/21, 2/21, 7/20, 6/20, 1/20, 6/17, 5/17, 4/17, 2/17, 7/16, 9/15, 7/15, 9/14, 8/14, 6/14, 2/14 b, 2/14, 1/14 b, 1/14, 12/13, 11/13, 10/13, 8/13.