Here’s what you need to know today

• Tesla investors are preparing for the vote on Elon Musk’s proposed $1 trillion pay packet. To realise the full $1 trillion payday, Elon would have to guide Tesla to an $8.5 trillion valuation - a size no company has ever reached and almost 6-times Tesla’s current valuation. The Norwegian sovereign wealth fund, one of Tesla’s largest outside investors, announced it would vote against the deal. (WSJ)
  
  

• Whether or not his pay packet gets approved, Elon Musk has his work cut out for him. Tesla reported that shipments to China fell 10% in October and in Europe through September, sales were down 28.5% compared to the first nine months of 2024.(Reuters | Bloomberg)
  
  

• The Australian government has added Reddit and Kick to the list of platforms to be banned for people under the age of 16. These two platforms join Snapchat, TikTok, YouTube, X, Facebook, Instagram and Threads as ‘age restricted’ in Australia from early December. The platforms will be fined up to $49.5 million if they fail to comply. (ABC News)
  
  

• ASIC has released the results of its surveillance program of Australia’s $200 billion private credit industry. The corporate regulator surveilled 28 funds including some of the largest such as Metrics, Challenger and Ares. It flagged some concerns including opaque fee structures, poorly managed conflicts of interest and unclear communication to investors about risks, but on the whole appeared to suggest a ‘light-touch’ approach to further regulation. (SMH)
  
  

• America’s tariffs are having their day in court. The US Supreme Court has heard arguments in Learning Resources v Trump that sees a group of plaintiffs challenging Trump’s power to unilaterally impose tariffs. The Supreme Court’s decision will either unshackle Trump’s tariff agenda or position him in a showdown with America’s highest court. (AFR)
  
  

• Nintendo has had a banner year, with shares up 52% so far. The good news continued as it upped its sales forecast of the Switch 2 console to 19 million units by March next year and raised its profit forecast by 16%. (CNBC)
  
  

• Novo Nordisk and Pfizer are in a bidding war over obesity-focused biotech Metsera. Pfizer opened the bidding at $7.3 billion a month ago and upped it to $8.1 billion after Novo also put in a bid. However, Novo has upped it again, offering $10 billion. (Reuters)
  
  

• Palantir, one of the most controversial stocks in the US market, had a mixed report. The company reported a strong quarter, headlined by a 63% increase in revenue. Investing is an expectations game, and with Palantir trading on more than 600-times earnings, it wasn’t enough for investors and shares fell 8%. (Yahoo Finance)
  
  

• Chinese President Xi Jinping met with Russian Prime Minister Mikhail Mishustin in Beijing. The two countries celebrated their deepening economic ties, which Russia has become dependent on since its invasion of Ukraine and the Western sanctions that followed. (ABC News)
  
  

• Bitcoin is down 17% in the past month, pushing the largest cryptocurrency briefly back below $100,000 USD. Ethereum has had an even worse run, down 29% in the past month. Crypto investors won’t be too worried though, extreme volatility is just part of the ride for long-term holders. (Bloomberg)

What the…?

GLP-1 drugs like Ozempic have sparked a revolution in the weight-loss industry with many users reporting that the drug changed their relationship with food. Now a new drug claims to be the ‘Ozempic for Alcohol’.

The drug, naltrexone, is being marketed to alcoholics as a way to change their relationship with alcohol. Following a process called the Sinclair Method, alcoholics are told to take naltrexone before drinking moderately, with the drug blocking the opiate receptors and reducing the pleasure derived from drinking.

While it doesn’t sound quite the same - Ozempic users don’t have to eat a Big Mac after taking the drug for it to work - it is a fascinating idea. And we’re sure its not the last time we’ll hear a drug called the “Ozempic for X”. (AFR)

Investing is a lifelong journey

Here’s what you can learn today

When to take profits and when to hold?

This is an excerpt from our Equity Mates Investing episode with Dominic Alafaci, financial advisers and founder of Collins House Private Wealth (Apple | Spotify)

Question: I’ve got some pretty healthy returns from investing in Tesla and Nvidia. Should I continue to hold or take profits? How do I know when to sell?

Good question. Three parts to my answer. Why did he buy the stocks in the first place? What was his objective? He needs to look back at that. If it's just simply to make money he’s at least achieved this objective.

Nvidia is my favourite stock in the world. Just about being an old game-y. I'm glad to see all those motherboards I spent money on have made them lots and lots of profits down the track.

So what was your objective? If you’ve achieved your objective, then sell out. Do you sell the the whole lot? If you achieve your objective, most people will keep some money in there and perhaps keep half.

The second question is do you have a diversified portfolio? Because if you don't, you're taking a huge amount of risk. If these are the only two stocks you've got [Tesla & NVIDIA] well, you don’t have much diversification. It doesn't matter how much money you make. And you could have easily invested into duds and lost your shirt. So if you don't have diversification - 5% to 10% in each position - you need to get it. So, sell some and diversify.

And the third thing is your tax situation. If you're making this money and you've now got the opportunity to sell out, take a gain, pay the capital gains tax and if you've got a mortgage, I would sink that money straight into the mortgage. Because the riskless rate of return is almost double what the interest rate is and you can't invest with zero risk.

A message from Fidelity

Over the past two decades, Asia has evolved from the world’s manufacturing hub into a dynamic region of innovation, affluence, and ambition. With tech startups booming and a rising middle class reshaping consumption, the next big investment story may already be unfolding.

Just as India was once overlooked, can investors afford to miss the next evolution of Asia?

Issued by FIL Responsible Entity (Australia) Limited, ABN 33 148 059 009, AFSL No. 409340. This is general information only and is not intended to be advice of any kind. Consider the PDS and TMD available at www.fidelity.com.au

Want more Equity Mates?