Best and worst investment decisions

[BUM]

Fascinating thread -- great learning opportunity.


I know scores of people in Silly-con Valley who held onto company stock or tech stocks as they imploded -- wonder how common it is to hold on too long vs choose poorly in the first place. Any other war stories of that kind?

Caroline

Hi Caroline,

Its a common mistake to hold on too long. Maybe knowing when to sell is harder to learn than when to buy. Recently I had to clear out the belongings of a deceased relative. I was surprised to see several stock certificates from companies long since dissolved. Now thats holding too long!


BUM

 

[laurence]

Worst: Bought a Mcmansion one year before my ex-wife wiped me out in the divorce. say, do you think she timed the deal?

Best: Took company options as bonus instead of salary when company was on hard times, sold them five years later once the situation turned around, and got to portfolio critical mass on the proceeds. I figured lighting was not going to strike twice, that I was lucky and not smart, and bought boring vanguard balanced funds to enjoy them for their conservative, low risk asset preservation. (Wellesly, Wellington, balanced Index...all Admirals on their own yacht sailing through the sea of investment pitfalls I most likely would have made but for one or two good breaks 8)).

You took an informed risk and it paid off, doesn't sound like dumb luck to me. The really smart move was knowing when to cash in and not double down!

 

[Nords]

I was surprised to see several stock certificates from companies long since dissolved. Now thats holding too long! BUM 

True, but possibly worth more as a collectible than the share price ever was...

And were they "dissolved" or bought out and exchanged for shares in another company? For example, Haloid shares are no longer traded since the company became Xerox.

 

[tryan]

Best: HUD real estate auctions. Propertys I still own are up 10 fold (an'counting) in roughly 10 years.

Worst: Shorting the NASDAQ as it ran from 4k to 5k - lost $9k. Then watching from the sideline as it tanked .

 

[Nords]

Worst: Shorting the NASDAQ as it ran from 4k to 5k - lost $9k.  Then watching from the sideline as it tanked.

I watched a relative short himself right back into the workforce on the NASDAQ between 1998-1999. He was absolutely right but not solvent enough to handle the market's irrationality.

Luckily he was able to buy back into his untapped pension plan (something about being willing to teach high school in East LA) and retire again last year.