Investors Are Debating Which Stocks They’d Never Buy, No Matter How Bullish Everyone Else Is. ‘Money Is Money, But…’

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Every investor has a stock they simply refuse to own, despite the excitement surrounding it. One Reddit user wanted to know exactly that and asked fellow investors recently which company they’d never buy and why, “no matter how…


Investors Are Debating Which Stocks They’d Never Buy, No Matter How Bullish Everyone Else Is. ‘Money Is Money, But…’

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Every investor has a stock they simply refuse to own, despite the excitement surrounding it.

One Reddit user wanted to know exactly that and asked fellow investors recently which company they’d never buy and why, “no matter how much others are bullish.”

The responses ranged from concerns about sky-high valuations to deeply held personal values, with Tesla (NASDAQ:TSLA), Palantir Technologies (NASDAQ:PLTR) and Strategy Inc. (NASDAQ:MSTR) among the companies mentioned most often.

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Valuation Isn’t the Only Reason Investors Stay Away

Tesla dominated the conversation, with dozens of investors naming it as the one stock they wouldn’t touch. Some said they simply didn’t trust the company, while others argued its valuation had become detached from reality.

“I don’t trust TSLA,” one investor wrote. “Not saying I’d never buy-in, but I’m fine with ‘that ship sailed.’” Another was even more direct, arguing there’s “no rational explanation for a bit player in the car market being worth more than all the established automakers combined,” adding that the stock is “overvalued by a factor of 50.”

Others said they avoid anything connected to Tesla CEO Elon Musk altogether, including SpaceX (NASDAQ:SPCX).

“Anything that is related to PayPal (NASDAQ:PYPL)] mafia,” an investor added. “[PayPal and Palantir co-founder] Peter Thiel is a very repulsive person along with Musk. Especially Palantir I find very dystopian.”

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High valuations were another common suggestion. One investor said they avoid companies with very high price-to-earnings or price-to-sales ratios because “they may boom for a bit, but will likely come down to earth eventually.”

Strategy also sparked debate. One commenter questioned the point of owning the stock at all, writing, “It’s all BTC. Just buy BTC.” Another responded that Strategy effectively offers leveraged Bitcoin exposure without the risk of receiving a margin call that can come with borrowing money to buy Bitcoin directly.

Not everyone based their decisions purely on numbers. Several investors said they avoid defense contractors, tobacco companies and certain health care businesses for ethical reasons. UnitedHealth Group (NYSE:UNH) was singled out by one commenter, who criticized its “business model based on denying coverage.”

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