Every now and then, you might encounter something in the stock market that makes you wonder: Am I crazy, or is everyone crazy? With what is going on at Tesla right now, I want to offer you the reassurance that it is the Tesla shareholder base that is completing disregarding the long-term intrinsic value of the corporation as the price of the stock has climbed from $35 last year to $585 now for a valuation of $555 billion.
The stock, which is set to be added to the S&P 500 in the coming days, is offering us a real-time lesson on why Jeremy Siegel’s papers concluded that investors would be better off owning the original S&P 500 without any of the additions that occur over time (the reasoning being that booted stocks usually are trading at too low of a price while the newly added stocks are getting there in … Read the rest of this article!