Please read this article!
There is a lot of blind, exuberant love for Elon and Tesla in this town right now. A lot of smart people are starting to feel more than a little unsettled about it.
Ask yourself: Why is your Uber driver dishing out investment advice right now? I remember this kind of things happening twice before (2000 + 2008).
Don’t be afraid, but be skeptical. The best kind of optimists are a bit grumpy because they are born skeptics.
Article High Points:
It sums up why we, as Austinites, should be really weary of Elon Musk.
“Elon has parlayed an almost religious movement of true believers to fund losses. This is a business that’s never really made accounting profits, let alone actual cash flow. Amazon did all of that, generating internal positive cash flow. Tesla has just burned cash. “
More on the dangers of religion and $$ is always good.
“…you have entire asset classes and investment theses and ETFs and portfolios that are built on nothing more than narratives about disruption and innovation and belief. It is, by definition, faith and religion, and I find that to be extremely effective and extremely dangerous.”
It identifies why there is no one to make your hamburger.
“I’m more concerned about the people who have dependents or mortgages, and everything has been working. In some cases, they might have had a job that maybe wasn’t so great. And they decided to quit it because they’re making more money speculating in crypto or speculating in the stock market and maybe even levering or buying on margin to do that.”
And it talks about why last mile/ home delivery companies are absolute s*#t.
“It’s amazing today watching and benefiting as a consumer, from Jokr and Gorillas and these under 15-minute delivery services, because I lived during the Kozmo.com and UrbanFetch moments, when you would order something and a dude would bring you your one-dollar drink with a hot chocolate chip cookie and a T shirt and a CD with a wrap on it, and you could order something again seven minutes later, they would do the same thing. Those companies went bust. That idea is back, and it’s being funded again. As a consumer, I think it’s brilliant. As an investor, I think these things are going to crash and burn again.”
https://www.vice.com/en/article/7kbx9b/the-to-the-moon-crash-is-coming
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