There’s no getting around that this has been quite a year for Carvana (CVNA)... The used car dealer, perhaps best known for its car “vending machines,” went from near death to being one of if not the best-performing of all stocks in 2023. The big question is the obvious:
Great advice – as usual – but two “unfortunately” come to mind.
The first, I’m sure you’re very much aware of: There is a huge amount of “ego” involved with “active investing”! Consequently, receiving good advice is one thing; taking that good advice is a whole other matter!!
The second, most of the “investment community” isn’t aware of (and it isn’t to the advantage of those that are to have the matter discussed, because it just might interfere with the advantage they take of the knowledge): Only approximately 2% of individuals with brokerage accounts are “active investors” and can actually read and understand their brokerage statements and have actually ever – at least one-time – completed the keystrokes to accomplish a buy or sell transaction with their brokerage account!!!
I’m in my 80s and I just learned this accidentally, about 8 years ago, when I created a group of 400+ (of what I thought would be “active investors” like me, from a community of 18,000 senior residents). The group’s intended purpose was “active investment” education and “discussion”. Until the Covid shut-down, thirty-eight well attended 1.5-hour monthly programs (95% began with one of The Great Courses 30-minute videos, and a handout summary). The “discussion” part was the tough part. It eventually became clear that, although the attendees had brokerage accounts, someone else was doing all the activity involved with 98% of those accounts!
A conclusion I was able to confirm, because, from time to time (after the formal program) a few would come up to ask me a question. Usually, their questions were so uninformed that I would suggest they bring the appropriate brokerage statement to the next meeting, so that I could better respond.
Looking, one-on-one, at their brokerage statements made it very clear almost no one could read their statements, and no one had done any of the transactions! They really were attending the meetings so that they could, probably, sleep better, feeling that they had been responsible about their investments by coming to a program about investing, independent of their advisor or broker!!
Think my 2% active, versus 98% uninformed is an exaggeration? Consider the claim of the American Association of Individual Investors: since its founding in 1978 “AAII has educated over two million investors”. Now divide that number by the hundreds of million individual brokerage accounts that were created over the same timeframe (because FINRA estimates that approximately one-third of “US Adults” have at least one brokerage account).
Herb, don’t misunderstand the above, you’re doing a great job of trying to help – keep it up!
Michael, I fully get it and the 2% sounds about right. I suppose the good news is that the other 98% at least wanted to know more. Active investing, as in actually doing it, isn't for everybody. But even if you're not the one making the decisions, understanding why they were made is a good think. Think about it this way: A celebrity who has somebody else manage all their money. Those who take an active interest - even though they're not doing the actual "managing" and investing - are less likely to wake up one day and realize it had all been frittered away! ;-) Thanks for the thoughtful comment!
No - this company is dead on arrival - they have bad reviews, many title issues and the used car market is declining /dropping due to the high rates - this company only lives/survives with ZIRP.
CREV's trading is just a product of it's float. There are only 50k shares. You'll notice it's warrants, currently $15 ITM are trading at 5c.
Super thin/illiquid.
Great advice – as usual – but two “unfortunately” come to mind.
The first, I’m sure you’re very much aware of: There is a huge amount of “ego” involved with “active investing”! Consequently, receiving good advice is one thing; taking that good advice is a whole other matter!!
The second, most of the “investment community” isn’t aware of (and it isn’t to the advantage of those that are to have the matter discussed, because it just might interfere with the advantage they take of the knowledge): Only approximately 2% of individuals with brokerage accounts are “active investors” and can actually read and understand their brokerage statements and have actually ever – at least one-time – completed the keystrokes to accomplish a buy or sell transaction with their brokerage account!!!
I’m in my 80s and I just learned this accidentally, about 8 years ago, when I created a group of 400+ (of what I thought would be “active investors” like me, from a community of 18,000 senior residents). The group’s intended purpose was “active investment” education and “discussion”. Until the Covid shut-down, thirty-eight well attended 1.5-hour monthly programs (95% began with one of The Great Courses 30-minute videos, and a handout summary). The “discussion” part was the tough part. It eventually became clear that, although the attendees had brokerage accounts, someone else was doing all the activity involved with 98% of those accounts!
A conclusion I was able to confirm, because, from time to time (after the formal program) a few would come up to ask me a question. Usually, their questions were so uninformed that I would suggest they bring the appropriate brokerage statement to the next meeting, so that I could better respond.
Looking, one-on-one, at their brokerage statements made it very clear almost no one could read their statements, and no one had done any of the transactions! They really were attending the meetings so that they could, probably, sleep better, feeling that they had been responsible about their investments by coming to a program about investing, independent of their advisor or broker!!
Think my 2% active, versus 98% uninformed is an exaggeration? Consider the claim of the American Association of Individual Investors: since its founding in 1978 “AAII has educated over two million investors”. Now divide that number by the hundreds of million individual brokerage accounts that were created over the same timeframe (because FINRA estimates that approximately one-third of “US Adults” have at least one brokerage account).
Herb, don’t misunderstand the above, you’re doing a great job of trying to help – keep it up!
Michael, I fully get it and the 2% sounds about right. I suppose the good news is that the other 98% at least wanted to know more. Active investing, as in actually doing it, isn't for everybody. But even if you're not the one making the decisions, understanding why they were made is a good think. Think about it this way: A celebrity who has somebody else manage all their money. Those who take an active interest - even though they're not doing the actual "managing" and investing - are less likely to wake up one day and realize it had all been frittered away! ;-) Thanks for the thoughtful comment!
No - this company is dead on arrival - they have bad reviews, many title issues and the used car market is declining /dropping due to the high rates - this company only lives/survives with ZIRP.
As has been the story through all the gyrations!