He buys 5,000 Tesla shares a month and is extremely confident that Elon Musk’s giant will continue to grow, doubling the number of cars sold in just a few years. Let’s talk about Kolja Barghoorna 36-year-old stock market expert, one of Germany’s best-known financial bloggers, speaking to Business Insider says he believes Tesla will outperform traditional automakers in the long run.
Tesla divides investors
Few companies polarize investors as much as the auto company of Elon Musk. American investor Cathie Wood is a fan of Tesla shares but there are also detractors such as “The Big Short” hedge fund manager Michael Burry who has instead bet on the decline in Tesla shares. Elon Musk’s creature achieved record sales of nearly $ 12 billion in the second quarter of 2021, double the same period last year. Net income for the second quarter was $ 1.1 billion, 10 times higher than the same quarter a year earlier. Some analysts believe the company is overvalued due to a high price-to-earnings ratio, while others believe the company has strong growth and earnings prospects.
Kolkja Barghoorn’s two-year plan
Among these precisely Kolja Barghoornentrepreneur e founder of the German YouTube channel “Aktien mit Kopf” (“invest with intelligence”). Since 2013, the 36-year-old has been posting videos on stocks and investments, and with over 300,000 subscribers, he has become one of the best-known stock market bloggers in Germany. Barghoorn also operates other companies, mainly websites and other YouTube channels dealing with topics such as taxes, insurance and real estate.
Barghoorn invests heavily in stocks. Since the beginning of 2022, he has invested 5,000 euros ($ 5,500) each month in Tesla and explains why. “The company is in an exciting phase, in my opinion, where it is making more and more profits,” Barghoorn told Insider. “I also believe that Tesla’s enterprise value will increase even more in the future.”
Its goal is to purchase a total of $ 130,000 worth of company stock, investing $ 5,500 a month for two years with a monthly savings plan. Its strategy is based on the cost-average effect, which is when investors regularly put a fixed amount into floating stocks. When prices are low, more shares are automatically bought, which means that timing errors can be avoided.
“I use a savings plan because Tesla can have a price correction at any time, or China can influence the price with various interventions,” Barghoorn said. This is why he doesn’t invest a large amount all at once, but prefers to invest a medium-sized amount on a monthly basis.
In the long run, Barghoorn is confident Tesla will do well, mostly because of its CEO, Elon Musk. “There is an article on Elon Musk’s blog in 2006 where he writes about how he wants to build Tesla. And he’s doing exactly what he said back then, ”Barghoorn said flatly rejecting accusations that Tesla is overrated because it makes and sells fewer cars than other companies.
“People forget what happens when revenue and the amount of cars sold double every year.” A 50% growth in a few years ago a “giant difference” for a company that regularly grows 5%, Barghoorn said concluding that “it doesn’t matter that an established company like Volkswagen sold millions of cars in 2020 and Tesla only half a million. “. Tesla will soon surpass them and sell up to 15 million cars in 10 years. But he said he’s also aware that his investment is uncertain, adding, “When you bet on a single stock, it’s always a risk. I might be wrong”.