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TESLA (NASDAQ: TSLA) Is it Time to Recharge the Batteries?



Ron Baron, a well- known professional investor, recently told CNBC that he has made profits --- over-time ---- of $6 billion on his investment in Tesla. He also stated he plans to remain a shareholder for at least another 10 years. Those are some bold statements. As a big fan of Ron Baron ---I'm kind of miffed that he never asked my thoughts, but I will forgive him. 

That said, a GOOD friend of mine, who also owns a relatively large profitable stake in Tesla, asked if it was time for him to take some profits. My response was pretty simple. In the long-term view --- my view is that if you believe in Telsa and have a diversified portfolio -- you could just follow Ron Baron. 

Ron's firm, known as Baron Capital, has approximately $60.0 billion in assets under management. He claims he still owns 6 million shares of Telsa. Doing the quick math, that equates to ownership of $1.182 billion of Telsa. Although this sounds like a lot, it is only approximately 2.0% of his total assets. In other words, despite the bold statements, Ron's position is relatively reasonable based on his total portfolio. 

He is really taking a prudent view.  

Thus, if you relatively own a lot of Telsa, I suggest you take a look at what percentage of assets it is of your total stock portfolio -----as well as your total net worth. If it is higher than 3% ---we would caution you and suggest more diversification within your holdings. 

Although we agree that Elon Musk is brilliant and a genius, his management style is volatile. The recent Twitter acquisition he personally made is somewhat a distraction. But worse, if he dies, it will be difficult for Telsa to replace him, and your portfolio could be in for a shock.


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