Invest in Alibaba or Tesla?

Someone asked me recently would I consider investing in Alibaba or Tesla now that their stock prices are much lower.

Of course, for long time readers of my blog, it is probably easy to guess my answer. 

Singapore has sufficient opportunities for me and investing in Singapore suits my purpose.

I am also at an age where I am less interested in excitement and more interested in stability. 

Yes, AK is a young senior, as coined by PM Lee.

Still, from time to time, the mind forgets the body's age.

So, I bought into Hang Seng Tech ETF a few years ago and I blogged about it too. 

I was quite clear that I was trading the ETF since the ETF did not pay a dividend. 

After a few rounds of trading, my current smallish position is at such a low price that I am OK with holding on to it as a speculative position. 

Of course, by holding on to the ETF, I have an exposure to Alibaba too. 

To be quite honest, if I must choose, I would invest in Alibaba and not Tesla.

From a valuation perspective, well, conventional valuation perspective, Alibaba is fairly valued and some might even say it is undervalued.

It is pretty easy to make a case to invest in Alibaba now if not for policy risk in China.

As for Tesla, I blogged about it before a year ago when its stock price plunged 10% to $163 per share in a day.

At the time, Tesla was trading at a PE ratio of some 45x even after the price plunge.

To me, it wasn't mouth watering but it was eye watering.

I said back then that if Tesla was the growth company people said it was, then, perhaps a 45x PE ratio was acceptable.

However, at a PE ratio of 45x, Tesla would have to grow its earnings at 45% a year to have a PEG ratio of 1x which would make it fairly valued.

To be fair, looking at industry peers, a PEG ratio of 1.5x might be more reasonable which meant that Tesla should grow at 30% a year to make a PE ratio of 45x acceptable.

Was Tesla growing its earnings at 30% a year? No.

At the time, I said a more reasonable price for the stock would be around $80 a share.

With its stock price at $147 now which is much lower than where it was a year ago, Mr Market could be slowly waking up to the reality.

Alibaba might have to face policy risk but Tesla has personality risk amongst many other risks.

Personality risk?

The erratic and hubristic Elon Musk.

I remember someone asking him about BYD a few years ago in an interview and if he was concerned with the competition.

Elon sniggered and said, "Have you seen their cars?"

Well, see who is laughing now?

If AK can laugh to himself, so can you.

Related post:
Tesla's results and valuation.

Socks or stocks, buy when they are marked down. Food too.

I used to blog about my meals in the early days of blogging.

Haven't been doing it for many years.

Anyway, I love fish fingers.

Specifically, Captain Birds Eye fish fingers.

I would buy the jumbo pack of 30 fingers whenever they are marked down.

Recently, I bought 2 packs as they were going for less than $17 a pack at NTUC Fairprice.

I have shared photos of how I would eat fish fingers in the community tab of my YouTube channel before and I thought I would share some photos here in my blog this time.

Most people would fry fish fingers but I bake them.

I would put them in a glass dish and put them in a microwave oven at 800 watts for 3 to 4 minutes.

Then, I would drench them in extra virgin olive oil (EVOO) and rice vinegar or apple cider vinegar.

This is followed by a powdering of ground cumin seeds, ginger, black pepper and turmeric.

These have various health benefits, especially for older folks.

This is what it looks like:

After consuming the fish fingers, instead of washing the glass dish right away, I would crack an egg and scramble it in the dish.

This is not to waste residual EVOO and the rest of the good stuff.

Microwave at 450 watts for 90 seconds and voila:

I usually enjoy some baked almonds with 80% to 90% dark chocolate as a dessert.

It might be an apple or an orange too.

That's one meal down.

I am enjoying my retirement and keeping things simple makes it even more enjoyable, especially when I am able to buy my favorite food when they are marked down in prices.

If AK can do it, so can you!