Some times people have trouble seeing the Forrest for the trees. This is my last post on this thread too, so just re-read my other posts, because I think you have over looked some key points.
www.worldautosteel.org
They do a small amount of SS work.Can INCAT weld 300 series stainless steel alloy.
Tesla Cybertruck - WorldAutoSteel
Elon Musk has confirmed high quality 300 series stainless steel as their engineering team’s material of choice for the Cybertruck.It’s corrosion resistant, strong and affordable - that’s why the Tesla Cybertruck team chose a stainless steel alloy to create the Cybertruck exoskeleton.
In this climate I'm surprised it just visited. I was expecting lower.
Give it time , it's only been a couple weeks , it's rarely linear . It's been down 32% high to low inside 20 trading days where NQ been down half that .
From ARB to Wisetech: Why I love founder-led stocks and you should too
During its darkest days Elon Musk spent nights sleeping at the Telsa factory to save the company and safeguard his investment. Picture: AFP
Every time we get to the annual results season I am always reminded of the long-term outperformance of founder-led companies.
When ARB, Reece, WiseTech Global, and Macquarie Technology report their full-year results, I am mindful the people behind these businesses are still driving strategy while ignoring the vicissitudes of the market.
The fact that bulk of their personal wealth is tied to the outcome of their efforts is a reason to keep a close eye on the companies whose share registers are dominated by founders, their families and friends.
As an investor, what gives me plenty of comfort is the copious research justifying that sense of wellbeing.
Wouldn’t you be comfortable with the roughly 10-year share price returns for ARB (+220 per cent), Reece (+310 per cent), Wisetech (+2685 per cent), and Macquarie Technology (+1748 per cent)?
Backing the argument to focus your investment efforts on founder-led listed companies is one of the most comprehensive studies on the subject by Credit Suisse.
The CS Family 1000 report examined 1000 publicly traded companies where the founder or founding family still had significant influence. First published in 2017 and updated in subsequent years, the report said founder-led companies outperformed broader equity markets by approximately 4.5 per cent annually over the long term.
Perhaps the most cited research into this subject is Bain & Co’s Founder’s Mentality framework. Bain’s research found companies which maintain founder-like qualities, such as an “owner’s mindset”, and “obsession with the frontline” tend to achieve higher revenue growth rates and superior shareholder returns.
In the complex system of investing, the knowledge that founder-led companies tend to outperform provides the raw ingredients for building an all-weather portfolio.
Founder-led firms tend to be more focused on innovation and long-term strategy, they often have a strong company culture rooted in the founder’s vision, they take more calculated risks, can be more disruptive and insurgent, and almost always focus on long-term growth rather than short-term gains.
Whether its America’s Bezos, Gates, Jobs or Zuckerberg, or Australia’s Tudehope of Macquarie Technology, Brown of ARB, Wilson of Reece or White of Wisetech, you will find that founders typically have substantial equity stakes in their companies, aligning their financial interests with those of other shareholders.
What business owner would, for example, care whether an additional billion dollars of revenue from a customer was received on June 30 or July 1? Analysts and the market may care, but business owners with a business owner’s mindset wouldn’t give two hoots.
In contrast, hired CEOs, while often highly capable and motivated to make money, may lack the same level of personal investment in the company’s success. Their career plans and corporate ladder-scaling dreams ensure compensation is frequently, although certainly not always, tied to short-term performance metrics.
This can lead to decisions that boost short-term stock prices but may not be in the best interest of the company’s long-term health. Qantas comes to mind as a recent example – a business now left with a damaged brand and a multibillion-dollar bill for replacing an ageing fleet of aircraft.
With their significant equity stakes, founders are more likely to prioritise sustainable growth, innovation, and long-term strategic planning. They don’t waste money on brand-building exercises; instead, they prioritise their spending on advertising “calls to action”.
Founder-led companies also tend to exhibit greater resilience in the face of adversity. This resilience often stems from the founder’s personal attachment to the company’s success. When times are tough, founders are more likely to double down, investing their time, energy and resources into turning the company around.
I have seen this multiple times. There’s an oft-ignored ratio in business called asset turnover.
The ratio compares a company’s gross revenue to the average total number of assets to reveal how many sales were generated from every dollar of company assets. When founders spend on R&D, or invest in assets for long-term revenue creation, this ratio plummets and impatient analysts become nervous, causing share prices to plunge.
When you see this occur to a reputable founder-led company with a long-term vision, it’s time to ignore the market and take advantage of its short-termism.
Elon Musk’s personal involvement in Tesla during its darkest days is another prime example of focused investment and reputation maintenance. Although he didn’t create the company, when it was on the brink of bankruptcy, Musk invested his money and worked to keep Tesla afloat. He is reported to have slept at the factory on and off for three years. This level of commitment is rare among non-founder CEOs who may be more inclined to seek a safer, less stressful career path when faced with such challenges.
Of course, founders can become blinkered and overly attached to their original vision, resisting necessary changes and innovations as the market evolves. This can lead to stagnation or even a decline if the company fails to adapt to a new reality.
Additionally, the concentration of power in the hands of a single individual can lead to governance issues, especially if the founder lacks the experience or willingness to delegate responsibilities effectively.
The bottom line, is founder-led businesses should represent a meaningful part of your portfolio. And in Australia, there are plenty of them.
Roger Montgomery is founder and chief investment officer at Montgomery Investment Management
They are working on it, the autopilot feature is learning all the time.
electrek.co
Fred Lambert runs the Electrek website. He was a very strong Tesla/Musk supporter and had shares in the company. It's fair to say he promoted Tesla strongly as the innovator and leader in EV technology.
On Sept 5th Fred announced he had sold all his Tesla stock. He gave a detailed explanation of the thinking behind his decision.
Worth checking out IMV
I sold all my Tesla shares (TSLA), here’s why
View attachment 183917 Fred Lambert | Sep 5 2024 - 9:25 am PT
420 Comments
View attachment 183918
I fully divested from Tesla (TSLA), selling all my shares. I’m going to try to explain why. At Electrek, we like to be clear about our biases rather than claim we have none.
I’ve followed Tesla since 2008 and invested in the company after it went public in 2010. I started writing about EVs, and especially Tesla, full-time in 2015.
I invested in the stock mainly because I fully supported Tesla’s mission to accelerate the advent of electric transportation. I thought then, and still do today, that a combination of battery-powered vehicles, with the ethical sourcing of raw battery materials, battery recycling, and renewable electricity production to power electric vehicles, is the only solution to making the transportation sector long-term sustainable while decarbonizing it.
Over the years, I had become a fan of electric vehicles, but I was clueless about how they could become mainstream until I read Elon Musk’s 2006 ‘Tesla secret master plan’. The plan made sense to me: make a high-end electric vehicle that is uncompromising against its gas-powered counterparts. Once you prove that it can be done, make increasingly cheaper and higher-volume EV models with the same approach.
That sounds simple, but it was a difficult task from an engineering perspective. Either way, it seemed to be the only way to meaningfully move the industry toward battery-electric vehicles.
On top of Musk’s blog post, which Tesla has recently removed from its website, I was also convinced by lectures given by Tesla’s original two co-founders, Martin Eberhard and Marc Tarpenning.
While these guys have been forgotten by many as part of Tesla’s history, partly due to Musk’s own effort, I credit them as early pioneers of the electric revolution. They were great early communicators of the feasibility of electrifying the auto industry and the necessity to do it.
Not without hurdles, Tesla did it. I am not going to recap Tesla’s entire incredible history, but the company was successful in convincing the world and the auto industry that electric vehicles are here, here to stay, and the future of the industry — something that most were denying less than a decade ago.
Tesla engineered and designed several highly competitive and attractive EV products, managed to ramp them up to millions of units, and forced the rest of the industry to invest hundreds of billions of dollars in electric vehicles.
I sold all my Tesla shares (TSLA), here's why
I fully divested from Tesla (TSLA), selling all my shares. I’m going to try to explain why. At Electrek, we...
Who cares ? I ran the story because his website, Electrek, has been a dominant source of information around EVs and the broader industry for almost 10 years. He was also a very strong supporter of Elon Musk and Tesla.
Good article, lot of detail.Fred Lambert runs the Electrek website. He was a very strong Tesla/Musk supporter and had shares in the company. It's fair to say he promoted Tesla strongly as the innovator and leader in EV technology.
On Sept 5th Fred announced he had sold all his Tesla stock. He gave a detailed explanation of the thinking behind his decision.
Worth checking out IMV
I sold all my Tesla shares (TSLA), here’s why
View attachment 183917 Fred Lambert | Sep 5 2024 - 9:25 am PT
420 Comments
View attachment 183918
I fully divested from Tesla (TSLA), selling all my shares. I’m going to try to explain why. At Electrek, we like to be clear about our biases rather than claim we have none.
I’ve followed Tesla since 2008 and invested in the company after it went public in 2010. I started writing about EVs, and especially Tesla, full-time in 2015.
I invested in the stock mainly because I fully supported Tesla’s mission to accelerate the advent of electric transportation. I thought then, and still do today, that a combination of battery-powered vehicles, with the ethical sourcing of raw battery materials, battery recycling, and renewable electricity production to power electric vehicles, is the only solution to making the transportation sector long-term sustainable while decarbonizing it.
Over the years, I had become a fan of electric vehicles, but I was clueless about how they could become mainstream until I read Elon Musk’s 2006 ‘Tesla secret master plan’. The plan made sense to me: make a high-end electric vehicle that is uncompromising against its gas-powered counterparts. Once you prove that it can be done, make increasingly cheaper and higher-volume EV models with the same approach.
That sounds simple, but it was a difficult task from an engineering perspective. Either way, it seemed to be the only way to meaningfully move the industry toward battery-electric vehicles.
On top of Musk’s blog post, which Tesla has recently removed from its website, I was also convinced by lectures given by Tesla’s original two co-founders, Martin Eberhard and Marc Tarpenning.
While these guys have been forgotten by many as part of Tesla’s history, partly due to Musk’s own effort, I credit them as early pioneers of the electric revolution. They were great early communicators of the feasibility of electrifying the auto industry and the necessity to do it.
Not without hurdles, Tesla did it. I am not going to recap Tesla’s entire incredible history, but the company was successful in convincing the world and the auto industry that electric vehicles are here, here to stay, and the future of the industry — something that most were denying less than a decade ago.
Tesla engineered and designed several highly competitive and attractive EV products, managed to ramp them up to millions of units, and forced the rest of the industry to invest hundreds of billions of dollars in electric vehicles.
I sold all my Tesla shares (TSLA), here's why
I fully divested from Tesla (TSLA), selling all my shares. I’m going to try to explain why. At Electrek, we...
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