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2020 Review: Tesla Takes Off, Big Tech Dominates, And Friends

January 11, 2021 by Mr. 1500 Days 17 Comments

Yay, 2020 is over! We could all use a break from the drama. And the virus. But here in Colorado, life is still pretty good and I have much to look forward to in the new year. But, I’ll save that for another time. First, we must discuss 2020.

Money

This is supposed to be a blog about personal finance and early retirement, so let’s start with money. From a financial perspective, our year was insane. The net-worth-o-meter increased $1,119,706.

During a pandemic.

In a time of massive political upheaval.

My first job paid me about $37,000 per year. Let’s do a little math:

$1,119,706 / $37,000 = 30.26

We made as much money as I would have made in 30 years of my normal job. For doing nothing.

I’m nothing special. I just mention these numbers to illustrate the power of compound interest. The bigger the snowball gets, the bigger the snowball gets. Save a little today and you’ll have a lot later.

Never forget this too:

It’s way better to let money work for you than to work for money.

Most of our gains were from a single stock (more on that in a moment), but if you’re a pure indexer, you had reason to be happy too. The S&P 500 returned an astounding 18.4%. And, this is why you should never, ever, ever, ever even think about trying to time markets.

To market time is a crime!

Well, not quite, but you’ll most likely be hurting yourself. Kinda like this:

Where The Gains Came From

Tesla ($600,000)

Tesla started the year at around $100 and ended at $700, a gain of about $600,000. We don’t play the lottery, so we’re never going to win it. Tesla stock is the closest we’ll ever get to winning a lottery.

Back in 2012, I bought most of my Tesla stock for $5.78. It closed 2020 above $700. Those original shares are now a 15,000% return. Oof.

I could tell you I’m a stock savant, but that would be bullsh*t. The simple truth is that I got lucky. I was impressed with Elon Musk and his newest creation, the Model S, so I bought the stock. I could have never predicted the factors that propelled the stock to $700 (autonomy, mass production of cheaper models, a pickup truck, insurance, charging network, etc.). Pure luck.

This insane stock price growth will not continue at the same pace and its current valuation is exuberant, but I think Tesla has a bright future, so I’m holding on.

Always buy the company, never the stock.

Big Tech Stocks ($195,504)

Before I knew what an index fund was, I bought tech stocks. Tech companies had their moment during the pandemic and helped boost my portfolio:

  • Amazon: $86,912
  • Facebook: $82,600
  • Google: $25,992

Again, I don’t think they’ll repeat this performance. The world will return to normal at some point and we’ll spend less time on our computers and more time outside. Also, I expect much of Big Tech to be regulated or even broken up soon.

The Rest

So, Tesla and Big Tech accounted for $800,000 of our gains. The remaining $320,000 came from index funds, syndications deal payouts, Mindy’s side-hustle, the coworking space, and a $75,000 boost to our home value when we had it appraised for a cash-out refi.

Regarding that last one, we had paid cash for our home, but took out a mortgage when COVID reared its ugly spikes. We then invested the proceeds. How is this experiment going you ask? Pretty freaking well!

In case the spreadsheet above doesn’t make sense, here is the short version:

  • Amount paid in mortgage interest: $6,344
  • Gains from invested money: $96,306
  • Gains if we had put it into VTSAX: $63,321

Leverage isn’t for everyone, but I just can’t pass up cheap debt.

Home Improvement

Despite the pandemic, I managed to complete a load of house projects:

Bathroom ($1,000): I remodeled the smallest bathroom in the home (YouTube video here).

Remodeling a bathroom
Before and after

Deck/Pergola ($10,000): The cost would have been much more, but thankfully I ordered the wood at the end of February shortly before prices on building materials went nuts. I had fun with this project because I was able to solve two interesting problems:

  • How do you build a curved deck? Especially difficult was bending the Trex for the picture frame finish (see second photo below).
  • How do you build a pergola that spans 25 feet? The answer is aluminum I-beams.
building a deck
bending Trex
Bending Trex was NOT easy…

Basement ($13,000): The is the single biggest project of our flip and most of the work is done, even if it looks like a disaster right now:

finishing a basement

Windows/Sliding Doors ($17,000): This is the single most expensive project, partially because we went with fiberglass instead of vinyl. The fact that our home has large windows and three sliding doors didn’t help.

replacing windows

Random projects included:

  • Loft for the kids
  • Rocks for the yard
  • Ceiling fans and new lighting in the bedrooms
  • Whole house fan

I’m about to take a big break from home projects. They consumed my life and I want to focus on other projects in the new year.

Steps And Fitness

I managed to crank out over 6,643,630 steps which comes out to 18,151 per day.

This number is lower than it should be because my old Fitbit crapped out and it took a week to get a new one.

Most of these steps were the result of construction. This kept me very active which is just how I like my life.

I was talking to a neighbor a couple of years ago about luxury. She told me her definition of luxury was lying on a beach being served drinks all day. It’s nice to relax every once in a while, but I’m not a fan of that definition.

Here is how the dictionary defines it:

For me, luxury and comfort come from knowing that my body is in a state that allows me to do all of the things that I enjoy; building, hiking, biking, and creating. Health. I don’t ever want to stop moving. Self-sufficiency for as long as possible.

Dad

I wasn’t too good at first grade. And by “wasn’t too good,” I mean really bad. My lackluster performance eventually earned me a second tour of duty in the first grade.

During the first go-around, my teacher would award a student a gold star sicker if she/he did well on an assignment. I was slow, so I earned my first (and only) gold star many months after school started. To celebrate the accomplishment, my dad made me a gold star out of wood to hang in my bedroom. I still have it today:

My dad wasn’t a touchy-feely kind of person. His way of expressing himself was the gold star.

I hadn’t anticipated losing a parent at this point in my life. My dad was 72 when complications from an aortic dissection took him in July.

I’m happy that he was a great grandfather to my children and that they’re old enough to remember him.

Thanks for the star dad.

Friends

The asset I most value, aside from health, is interesting, diverse, and long-standing friends.

-Warren Buffett

Pandemic life has been isolating. There are friends we haven’t seen since the beginning of 2020. With other friends, it just got awkward. Still others who had their lives changed by COVID decided to move to my hometown of Longmont. Some of it is strange. Some of it is surreal. Much of it sucks.

Some of the best parts of my 2020 were when I was able to get outside and see friends. I never thought my introverted self would be so happy to see other humans, but there you have it.

If you’re reading this, you made it through 2020. Congratulations!

Here’s to a happier and healthier 2021.

The way I see it, if you want the rainbow, you gotta put up with some rain.

-Dolly Parton

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Filed Under: Performance Tagged With: 2020, 2021, tesla

Reader Interactions

Comments

  1. Financial Freedom Countdown says

    January 11, 2021 at 1:10 pm

    Great job on the deck. I am definitely not handy so it is all the more impressive.

    I sold most of my Tesla after the split and it still went higher.. I do hope your 10 year post comes true. Elon is a brilliant genius and it is unfortunate that he had to leave CA..
    Financial Freedom Countdown recently posted…Farmland Investing: Is It Worth It And How To Get Started?My Profile

    Reply
  2. Tawcan says

    January 11, 2021 at 2:37 pm

    The deck looks amazing, Carl! And amazing that you kept holding onto Tesla over the years.

    Sorry again for the passing of your dad. You’re right, it’s good that your daughters are old enough to remember him. That’s something I can’t say for my grandparents on my dad’s side.

    Here’s to a great 2021.
    Tawcan recently posted…Reviewing our 2020 dividend stock transactions – $115k added.My Profile

    Reply
  3. Mr. Tako says

    January 11, 2021 at 3:24 pm

    Ooof! A million dollars in a single year?!? Yikes, that’s an incredible gain! 15,000% returns!?! That’s unreal!

    We faired pretty well in 2020, but nothing like that! Don’t let it go to your head Mr. 1500. Stay grounded.
    Mr. Tako recently posted…2020 Year-End Net Worth UpdateMy Profile

    Reply
    • Mr. 1500 Days says

      January 11, 2021 at 7:45 pm

      Haha, today I helped move a crappy couch from someone’s yard into the back of their trailer. I also unclogged a toilet and mudded some drywall. Ahhh, the glamorous like of a millionaire…

      Reply
  4. Adam says

    January 11, 2021 at 7:57 pm

    Can you give us any more insight into the sale of your Trailer Park investment? Congratulations on getting through 2020 on an even keel.

    Reply
    • Mr. 1500 Days says

      January 12, 2021 at 9:04 am

      The closing was delayed, but it’s supposed to close today! If that happens, I’ll write about it in the next couple of weeks.

      Reply
      • Adam says

        January 12, 2021 at 11:22 am

        Terrific, thanks! Investment Joy on youtube has made the topic seem rather interesting

        Reply
  5. freddy smidlap says

    January 13, 2021 at 6:44 am

    i really like that gold star, man. i had the same type of dad so that is relatable.
    freddy smidlap recently posted…Be a Financial LumberjackMy Profile

    Reply
  6. Mike says

    January 14, 2021 at 5:22 pm

    Tesla. Sell it now. Don’t be a fool. Sell!

    Reply
    • Mr. 1500 Days says

      January 17, 2021 at 8:04 am

      Haha, so we have a difference of opinion here! I’ve never spent more time studying a company and while I fully acknowledge the current share price is exuberant, I believe Tesla has a very bright future. Check back in about 2025 and we’ll see who was right…

      Reply
  7. Marla says

    January 15, 2021 at 7:35 am

    Happy New Year Carl (and family)! 2020 was quite the year and your post sure highlights the relative importance of money. Once we have enough – the importance it offers is freedom and security but it sure can’t buy us out of a pandemic, bring back loved ones or earn us valued friendships. I am grateful to count you as a friend and I so much look forward to a return trip to Longmont to see you guys, admire your massive improvements to your house and enjoy great comfort and extravagant living! All the best for a happy and healthy 2021!

    Reply
  8. BC | FrugalWheels says

    January 15, 2021 at 1:31 pm

    I gained a lot of money this year, but I am sad about what happened to my friendships this year. Ryan and Allie came by the house a lot during the summer for outdoor, spaced out visits, but now it’s cold and those aren’t happening as much. I saw it as a good time to hunker down and build my investments. But it’s been tough not to be able to see friends. Indeed, here is to a much healthier 2020!
    BC | FrugalWheels recently posted…FrugalWheel’s guide: How to save money like a bossMy Profile

    Reply
  9. David @ Filled With Money says

    January 16, 2021 at 5:36 pm

    Congratulations, Carl. I remember buying Tesla at $180 many years ago and it immediately going down with production issues with a fire. So I sold and never looked back. Welp, I should have looked back.

    I agree timing the market is a very difficult thing to do and 99.9% of people are better off not even trying to do it rather than trying to do it. There’s a high likelihood that S&P will be at a higher point 40 years from today. Though it is scary to think about 40 years into the future already.

    Reply
  10. Lazy Man and Money says

    January 18, 2021 at 10:33 am

    Sorry about the loss of your father. That’s a tremendous story about the gold star. My father died when I was in the 7th grade. I regret not learning all the construction things he could do, exactly like you are doing in this post.

    I bought a ton of Palm stock when they invented the smartphone with the Palm Treo 300 in 2003. It should have been a Tesla, but almost everything went wrong from the inability to negotiate big promo deals with the wireless carriers to a random CEO scandal. I’m still bitter about it.
    Lazy Man and Money recently posted…Passive Income Update: December 2020My Profile

    Reply
    • Mr. 1500 Days says

      January 18, 2021 at 3:12 pm

      Palm! Holy cow, that’s a blast from the past. When that thing came out, I was working in the IT department and that thing was the must-have device for everyone in management. Unfortunately, I had to support them. Ugggh.

      7th grade, that sucks. It’s a helluva thing to go through at any age, but middle-school is way too young. However, you seemed to turn out pretty good, money pants and all! 🙂

      Reply
  11. Chris@TTL says

    January 24, 2021 at 7:59 pm

    Great to see all the successes—even if I think you’re a little crazy to still be holding TSLA 😉 But hey, nobody ever made by sitting on cash! Gotta do what works for you.

    Looks like the house projects have all come together form quite the ensemble. And I have no doubt it’ll be quite the flip.

    Come help me fix our bathroom.
    …Please? 🙂

    …And want to know a secret? Here’s a quote from my inbox (an email sent to a handful of my friends):

    “Everyone else bought TSLA at $33 when I mentioned it, right?
    [link to an article about TSLA’s stock rise]
    -Chris”

    Email date? April 1, 2013. That $33 pre-5:1 split price is equal to $6.60 today. When I sent the email it was at about $44 pre-split.

    I bought close to IPO back then.

    Guess I should have kept holding eh?
    Chris@TTL recently posted…FIRE Budget In-Depth: Unusual Ways We Spent $40,862 in 2020My Profile

    Reply
    • Mr. 1500 Days says

      January 25, 2021 at 8:21 am

      Tesla! Or should I say $TSLA. The stock price is disconnected from reality, but I’m a big believer and think the company will achieve a 2t market cap sometime in the decade, so I’m holding on.

      Bathroom! Sure! Assuming COVID is mostly gone, we’ll probably be out your way.

      Reply

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Freedom!

My goal was to build a portfolio of $1,000,000 by February of 2017; 1500 days from the birth of this blog (January 1, 2013). And hey look, I’ve since retired!

Investments only (primary home excluded)
1/1/13 (The Start): $586,043
1/1/14 (1 Yr Later): $869,635
1/1/15 (2 Yrs Later): $987,351
1/1/16 (3 Yrs Later): $1,057,961
1/1/17 (4 Yrs Later): $1,257,128
1/1/18 (5 Yrs Later): $1,527,701
1/1/19 (6 Yrs Later): $1,549,440
1/1/20 (7 Yrs Later): $2,035,040*
1/1/21 (8 Yrs Later): $3,379,746**
1/1/22 (9 Yrs Later): $4,762,642
1/1/23 (10 Yrs Later): $3,112,821

2023: Investments only
1/1: $3,112,821

Overall
2023 investment gains: $0
Investment gains since 1/1/2013: $2,526,778
Net worth***: $3,342,821

* The big jump between 2019 and 2020 was partly because we bought another home, but kept the previous (much more expensive) one as a rental. We have since sold it.

** Tesla.

*** Includes our primary home equity in addition to our investment portfolio.

Finally, we still have about $290,000 in mortgage debt (which I love!). No regrets about the debts!

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