August 1, 2021

This is the 4th episode of my journey to buy my favorite car in the world - Tesla.

In this video we will talk about Pfizer, which is one of the positions I recently exited. If you have been following the news on the vaccines, then you will know probably the name Pfizer, which is a manufacturing company playing an important role in getting the entire world vaccinated.

A couple of months ago, it was at a discounted price. I entered using stock options, and was able to multiply profits. And, and now we got out of Pfizer.

We will dive into the numbers and talk about the trade, the amount of capital invested, and where we are at in our progress of using only investing gains to buy a Tesla.

90% correct transcript

So what's up guys. And welcome back to another episode of wall street buys me a Tesla. And this time we're going to talk about one of the positions I recently exited, which is Pfizer. So let's dive into the numbers.
So for those of you who don't know in the previous episode of wall street buys me a Tesla. Pfizer is one of the latest investments we got into. Now, if you have been taking the vaccine, then you will know probably the name Pfizer, you know, it is a manufacturing company and it played an important role in getting the entire world vaccinated. So it also has a lot of other products as well is a big pharmaceutical company. Maybe a couple of months ago, it was at a discounted price. So we got in at a discount and then we use stock options, multiple prior profits. And, and now we got out of Pfizer. So now we'll dive into the numbers and talk about what is the trade we made? What is the capital invested? What is the gain and where we are at in terms of using investing to buy a Tesla and achieved a goal.
So here's Excel. Um, this is actually the data I directly copy and paste from TD Canada. So here you can see, uh, initially I invested $99,808. So this is actually almost entire balance. I dedicated to, uh, buying a Tesla using my funds. Of course, my portfolio is a lot larger than that. So this is really only a portion of it. So we had two positions, one was $54,000 and another one was $45,000. And this was entered in February, 2021. So by the time I'm recording, this video is actually July. I'll tell you why. I didn't make this video immediately when I exit in April, 2021. So when I exit in April, 2021, then for the first position I made $78,000, 933. And for the second position I made $58,000, 702. So the total here is $137,635 and 56 cents. So once you use an Excel formula to minus stats, then you'll get the gain to be $37,826, which is a 38% return.
So this is approximately three months or so. So it's a pretty good return given a three month period. And because, um, I use stock options, I was able to take a shorter gain and I don't want to be holding onto Pfizer for too long, um, because I'm using stock options in this case. So let's go to the summary sheet and just to backtrack, uh, where we started. So in the very beginning, I said, I wanted to buy a Tesla that is $76,000. So I have a capital of $75,000, but I don't want to use my capital to buy a Tesla. Instead, I want to save up over the next three years, making 30% a year to buy a Tesla, which is $76,890. Now I think I initially I said I was going to buy model three, but turns out there's model Y as well, which the cost is about the same.
So I think I'm going to be going with model Y uh, we wouldn't be going through the purchasing process in this video, but once I buy the Tesla may be in, in a couple of years, then we'll do a video on that. So in year one, our goal is really to make 22,000 and year two 29,000 and year three 30, 8,000. So the total would be 89,000, which should give me enough profit to buy the Tesla along with some charging, uh, set up that in my house, so on and so forth. So the first investment I have is Altrix, uh, which I still have as of today. Second investment is American express where I made 70%. The third investment is Intel, where I made 109%. And fourth investment is Sienna where I made 57%. So that's in episode 1, 2, 3, and so on. And fifth investment is Kirkland gold, which I still have it at the moment.
And my six MSF investments is the current one Pfizer. And that's where I kind of, you know, almost reached a goal. So I just put all on K advisor and I made 38%. So that's $137,634. So the entry dates exactly will be February 16th, 2021. And the exit date is April 17th, 2021. So the capital remaining here really represents the cash I have on hand. Um, and then I would add Kirkland and also Altrix together, uh, based on the market value. And I would get to 170,000. So this is actually July 12th now. And minus thing, the initial capital I put in then right now, my gain as of today is $95,000. So since I started, uh, which I think was late 2020, I have made $95,000 using $75,000. So that was pretty good. And I haven't successfully achieved Michael and over it by 25% so far. And of course I haven't exited these two positions yet, so there's still room to grow.
So let me go to the chart and explain to you what I mean. So here is the chart for Pfizer. Now, for those of you who came to my channel for the first time, and you have no idea what you're looking, this is really the technical analysis charts I use. A trading view is a free tool. You can get this chart template and the first link below, uh, I have a training video where I walk you through how to set this up, how to read this chart, how to use it. So then you find stock star at a discount is the first link in the description. So if you look at this, then you will find that, okay, I actually got in February 8th to around March 1st, these couple of weeks when Pfizer was at a low price. So you can see that I got in around 34 to a 34.37 to 44.67.
Uh, so this is the stock price. But in this case I use options, which is an advanced technique. Uh, I teach an investing accelerator, which allows me to multiply my profit. So the easiest way to think about that is that it allows you to multiply your profits. So after that, Pfizer continues to go up. And this is when that Pfizer is rolling out the vaccine. So it's getting a lot of attention and also attracting a lot of investors to put money into it. So to be honest, this actually happened a lot faster than I thought my original plan was to hold onto Pfizer for a year. Uh, but of course, uh, the vaccine was a crucial factor in terms of opening the economy. So all the governments around the world are basically buying vaccines from Pfizer, which led to a lot of good news, which led to the stock price increasing.
So now, uh, at $37 56 cents, which is April and so on, I accepted my position here, here, and also here. So I actually exited over multiple stages and you can see that after I exited for the last couple of weeks, it has been kind of horizontal and not doing much. Uh, so I think I made quite a good gain, uh, from this exit. So that's how you would look at it from a technical perspective. Now, when you're looking at Pfizer while their cash question is probably, well, do you think it will continue to go up? Well, I think the answer is looking at what kind of company Pfizer is. It will likely be going up. Uh, but in my case, I have already reached my 38% goal, uh, which exceeded the goal for buying a Tesla. So I'm pretty happy with it. Uh, so I just talked to profits and I invested it in another stock.
Uh, so as of this point, I previously set that I have 139,000 of cash remaining, that was in the Tesla fund. Uh, but after this, I actually allocated it to and another couple of holdings. So at that point I would consider this project of investing 75,000 to make 60, uh, 76,000 for a Tesla is complete. So I don't need to invest based on this reason anymore. So I'm just investing regularly, which is actually the same way as I normally invest. So that's how, uh, I entered and exited Pfizer, which is my latest investment. So in terms of Tesla, uh, here is really the exciting part. Now I'm not going to be buying the Tesla today on this video. I'll probably make another video on it because I'm not personally ready to buy a Tesla yet. Uh, but I have the money for it. And I'm going to talk about the plan in terms of financing and, and what kind of tests I'm going to choose so on and so forth.
So then you have an idea of how I buy a Tesla and how I delayed a payment as much as possible. So first I actually looked up the price for a model S three X and Y, which smells sexy. And I actually like SUV Moore's. Uh, so I chose model Y so here, you can see this as like a midsize SUV, which is what I'm looking for. Uh, so I think in the very beginning, I said, I wanted more model three because it fits within my budget. I think it turns out model Y should be around the same. So we'll explore that together. So I click order. Now I'm thinking of something like a black Tesla. Uh, it actually remembered all the features I chose black rims, why not? And I want to choose long range. Uh, so in case, you know, I need to go somewhere really far.
So choose that I choose black, black wheels. Uh, don't know what that is. Skip. And I choose a white layout to contrast the black exterior. And I choose a seven seater. I mean, I could have chosen a five seater, but why not? And then full self-driving capability. I want to include that as well, because that is basically the only reason why I'm buying a Tesla is to try this out. And if I go down, then I would continue to payments. So the good thing about model Y is that the estimated delivery is October and I'm not in a rush to buy a Tesla anyways. So I wouldn't be purchasing it immediately. So it's fine. So here you can see that is $89 and $790. So this is actually a little bit out of my budget, but I have made enough gains to pay for this thing. So I think when I'm looking at the different ways to finance it, one of the other options is actually a loan.
So I think if I choose to lease, then I can pay a lower monthly amount, but then there's probably an amount I need to pay it again, if it is a loan and this is 96 months, 3% APR, this is 48 months. So if I need to choose, then I would probably choose 96 months because the number of months is higher and the APR seems relatively reasonable. Yeah. So I would probably choose a loan, uh, which means I would be paying 964 a month. So what this means is even though, as of today, I have already made $95,735. I'm going to take this gain reinvest in my portfolio regularly. Uh, and when you asked me, I'm actually not doing any difference, this is what I would do for my own portfolio anyways. Uh, and I'll continue to compound it at 30%, uh, if possible for the next 96 months.
So 96 months is eight years. So you can imagine if I buy a Tesla for 900 a month and I take the money, invested, compounded at 30% for the next eight years, I'm sure that amount will be a lot higher than whatever I'm paying here. So I think that is fine. Uh, let's see if I can customize payment. So AP AR is 3%. This is actually surprisingly low for a loan. Usually when I think about it, you know, typical lease, it's like 7% to 9% and this is actually the longest loan. So that's actually not bad if I choose 84 months, Hey, the APR actually remains the same. So in this case, APR is actually lower at 60 months, but it is still better to delay the payments and place slightly high APR in this case. So I would choose 96 months. So I would pay it over a long period of time.
And this gives me the maximum amount of time to invest and reinvest. So I think that is pretty good. Um, and that's probably my plan. So that's probably what I'm going to do, but right now I'm working on a couple of other projects, uh, and so on. So I wouldn't be buying a Tesla at the moment. I have the cash, I achieved it using investing. Uh, so I would save on that cash, reinvest it for now. And when I decide to start getting the Tesla, which you can see is very sexy. Let's just enjoy this for a minutes. Um, then I would just buy it on the website. So the next video for this series would be me sitting in a Tesla hopefully, and explaining to me, uh, explaining to you how awesome it is.
And when I think about this $964 and looking at the gas price in BC right now, um, I think it's actually worth the saving. So I go to the gas station maybe once every week or once every two weeks. And every time I spent around a hundred bucks there just to get gas. So my gas expense is 200 bucks to 400 bucks a month. Um, surprisingly it is quite high given that I mainly work from home. Uh, so I just used a car for leisure purposes. So if you think about the gas I save per month, and it would be only $564. And if I figure out a way to deduct this expense through smart accounting, uh, where, or if this car is for business purposes and, you know, we'll work that out and perhaps there's potential savings where I can basically save more money.
Uh, but nevertheless, I wouldn't be buying it right now, even though I have the capability to, uh, and I would just wait a little bit longer. So this is really where to delay gratification part comes in. Um, I really wanted to buy it. I mean, I can click the button and buy it, but I will have the self-control and invest in reinvest my portfolio. Uh, maybe for one to two more years before I get there. So by then I might have a lot more capital in terms of my portfolio. Uh, I might be able to afford the model X, uh, by then, but I think model Y already has everything I need, which is kind of SUV, dual motor self-driving. Yeah. I'm pretty happy with it. So yeah, that's my investing journey to get a Tesla. So maybe let me know. What's a good next skull. Maybe I'll just buy a house. Um, wall street buys me a house as a next series, so we'll see how that goes. And I'll see you in the next video.

About the author 

Eric Seto

Investor, CPA (Canada) based in Hong Kong and Vancouver

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