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gurupa wrote,

This is my first post on this board, but there is a good reason for it. A couple days ago, I sold my absolute worst investment.

You see, I am an American who lives and works in Brazil. I have a finance degree and very soon after graduating in 1990, I started investing in 1992 but soon figured out that most mutual funds under perform the market. So, I graduated myself from mutual funds to stocks, the first week of 1995. I thought "Hey, I can do this". Well, I figure some good stocks to buy and hold.

But, in Brazil, I run across this Canadian. And he starts telling me about this awesome goldmining stock that sells on the Vancouver stock exchange. The headquarters are in his home town. I mean, it was going to be big, real big. He kept telling me how he knew people on the board of directors, how good people were behind the company, etc. Well, I bought Calais Resources about three years ago. I mean, I bought $13,000 worth!! And two days ago I sold all 1200 shares for $301.44. Ouch!!

The good news is that I still have money to invest and inspite of that major mistake, I am still beating the Dow and S&P over the last five years. The guy who recommend the stock to me lost his shirt, I mean he had invested everything in that one stock. I have learned not to accept tips, no matter how great they sound. Heck, I rarely read financial magazines even.

The moral of the story...
"Don't accept tips on Candian stocks while in Brazil."

I am sympathetic to your story because I have a somewhat parallel story only with a lesser magnitude. I am a Canadian myself, and about three years ago I was called at work repeatedly by a Canadian brokerage firm that pushes Juniors by cold calling. I was currently invested in mutual funds in a retirement savings plan only, but I was curious about stocks. After enough cold calls I finally let one of the brokers talk me into an investment in a Canadian resource Junior that was into gold exploration in Indonesia (Bre-X was still hot at that time). I bought 500 shares at $1.30/share (Canadian) with a $45.00 commission. When Bre-X went down they took my company with them. The stock dropped to $0.25/share a couple years ago. The management then changed their explorations to oil in Western Canada (they also changed the company name). The stock price climbed slightly to about $0.50/share and meandered in that area. I sold it all a few days ago for $0.40/share with a $27.00 commission via my online discount broker that I use for Motley Fool investments. I lost about $522 Canadian. Now, I use an index mutual fund to keep my Retirement plan topped up for tax purposes and invest in stocks on American exchanges (with a US$ account) using the Foolish strategies. The only good thing that came out of that investment was that it sparked me to learn about stock investing which caused me to stumble upon the Motley Fool Investment Guide in a bookstore.

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