Reddit user u/BawceHog has made a fortune off of both Tesla (NASDAQ: TSLA) and Apple stocks, $5.4 million to be exact. But there’s one little problem: he doesn’t know what to do with it.
The 32-year-old BawceHog has 14 years of investing experience, and the tumultuous events of 2020 have made him one of Tesla’s biggest retail investor success stories. In the r/WallStreetBets subreddit, he is now asking what to do with the substantial sum.
“I have a $5.4M portfolio generating ~$155k/yr in dividends,” he wrote in his Reddit posting. After using some choice language, he asked his fellow Redditors for some advice. “Someone recently told me about this sub, and I’m interested to know what plays you [NSFW language] think I should make.”
Some told him to take his dividends and invest in NIO, another EV company. Some suggested he play it conservatively and reinvest the earnings in stocks that will be safe after the COVID-19 pandemic settles down. Others told him to take advantage of the pandemic and invest some into vaccine makers like Pfizer.
And lastly, some told him to take his earnings and walk away. “If you’re not lying, close this tab, and never come back here. You have it made. Why would you piss that away?” someone wrote, according to MarketWatch.
TSLA stock is up over four-times so far in 2020, starting at $93.81 on the first day of the year. The price has been adjusted as TSLA split its stock 5:1 on August 31st. The gains have primarily been boosted by Tesla’s impressive EV tech, which is well beyond anyone else in the sector. Additionally, the company is riding a profit streak of five-straight quarters and is coming off its biggest three-month span in terms of deliveries and production figures.
With large-scale funds and investment firms being the biggest winners as a result of TSLA’s surge on Wall Street, some retail investors are tasting big wins as well. The company’s 2020 performance has made it one of the most popular stocks to invest in, especially among young retail investors who have had some extra money to throw around during the pandemic. According to Apex Clearing, a Dallas, Texas-based custody and clearing company, Tesla overtook Apple as a millennial’s go-to stock.
Have any suggestions for BawceHog? Let us know in the comments or on Twitter!