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Tesla investor Lee Koguan:
Just buy more
Photo: Desiree Navarro / WireImage
While the Tesla share takes off like a SpaceX rocket and Tesla boss Elon Musk (now worth more than 300 billion US dollars) keeps the world in suspense with new plans, an investor in Singapore is also quiet within a short time Risen to multiple Tesla billionaire: Leo Koguan, born in Indonesia, lives in Singapore and founder of the software company SHI International, has earned several billion US dollars with Tesla in the past ten weeks alone.
The 66-year-old Koguan was already rich when he came to the conclusion in 2019 that Tesla was actually a very good investment idea.
Now, around two years later, the silent investor is really rich.
"I believe in Elon Musk and in his mission," Koguan told the world via Twitter in September. Since then, Tesla fans and Tesla skeptics have seen the value of Koguan's Tesla stock rise: $ 4 billion in September, more than $ 5 billion in October - and now, in early November, more than $ 7 billion.
Is it possible that a silent investor from the Far East can quickly become Tesla's third largest single shareholder, right behind Tesla boss Elon Musk and Oracle founder Larry Ellison, asked the business agency Bloomberg full of skepticism.
But according to research by Bloomberg, this is the case: At the end of September, Koguan already held 6.3 million Tesla shares, according to bank documents.
In addition, there would be almost two million options that would give him the right to purchase Tesla shares for between 450 and 550 US dollars - that is, for less than half of the current Tesla stock market price of around 1200 US dollars.
The man apparently did everything right.
At the same time, in the past two years, he has probably thrown all the rules of common sense, diversification and risk control overboard.
"Sometimes you win, sometimes you lose," the Tesla billionaire sums up his experience as a shareholder to Bloomberg.
"Fortunately, I win more than I lose".
His recipe: focus on one stock - in this case, Tesla.
Always trust in Elon Musk.
And buy diligently with every price weakness.
"All of my liquid assets are in Tesla"
As chairman of the New Jersey-based US software company SHI and as a successful real estate investor, Koguan had the small change he needed right from the start to invest a substantial amount in Tesla.
Since he only invested as a private individual and his stake in Tesla is still well below the 5 percent threshold, he is not obliged to disclose his shares to the US regulatory authorities.
Koguan just kept buying, buying both shares and purchase options - and always remained bullish on the electric carmaker's share.
When Tesla shares rose around 14 percent in one day last week due to a major order from car rental company Hertz, Koguan tweeted: "I'm all in. All of my liquid assets are in Tesla."
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According to his own statement, Koguan only started equity investments in 2019.
Previously, the 66-year-old investor with a US passport was more likely to attract attention because he supported several top Chinese universities with donations of millions.
A year ago, Koguan also bought James Dyson's luxury penthouse, which extends over three floors in the tallest building in Singapore, for 46 million US dollars: The British vacuum cleaner king and Brexit fan Dyson temporarily lagged behind after Brexit Singapore withdrew, but then had to sell the top address again with a loss of around $ 8 million.
Koguan's equity investments were initially more widely diversified - stocks from Baidu, Nio and Nvidia were also part of his portfolio.
But after a few months he focused exclusively on Tesla.
Ron Baron, billionaire founder of Baron Capital Management, convinced him in a podcast published by Dave Lee to concentrate his capital on the US electric car maker.
Koguan bought shares and options, and in spring 2020 he held around 2.4 million Tesla shares (after the 1: 5 share split that is around 12 million shares today) valued at 1.5 billion dollars.
Almost bankrupt in spring 2020 - and aggressive bets on the comeback
Then came the corona crash.
"In March 2020, I had lost almost everything," says Koguan.
But Koguan retained his belief in Tesla.
He didn't let himself be nervous about some margin calls either when some of his option bets collapsed.
Instead, he continued to buy stocks and options: as soon as the options produced profits, he invested some of them in stocks and some in new call options.
He bet more and more money on a rapid recovery of Tesla shares - and the risky bet paid off.
Of course, it is highly unreasonable to bet everything on one stock.
But he can allow himself that, because he has already diversified his assets, emphasizes Koguan.
His stake in SHI is worth around $ 3 billion, according to Bloomberg.
With such company assets in your back, you can play a little with Tesla shares.
His rise was remarkable even before his Tesla investments: Born to Chinese parents in Indonesia, he soon moved to the USA and studied at the New York Law School. The investor told the Wall Street Journal that he spent his "best years" in a lousy apartment in Manhattan's Morningside Heights. In 1989 he bought an insolvent software company from which he then formed SHI. The company's annual sales of around $ 6 billion give today's chairman enough income to support various universities on the side.
How much money will Koguan, now worth more than 7 billion dollars, invest in Tesla?
Will he take profits when the Tesla hype subsides?
No, announced the investor.
His goal is to reach 100 billion dollars - this sum is necessary to implement a concept that enables people in China to have free health care.
Big goals.
Before that happens, Koguan has to make a few more Tesla bets and win.
