No. of Recommendations: 4
I guess my dumbest investment was my first security of Pepsico.

My story goes like this:

I knew absolutely nothing about the stock market or more specifically about buying stock. A co-worker would walk through the office talking about a purchase she made that was making her some money. She was very happy about that stock. One day I asked her about the stock. We discussed it over lunch. She told me about the market and and advised me to get involved. I was sceptical but I told her I would think about it. She gave me the name and number of her adviser. I called the number after thinking about it for a couple of days. The broker was nice and explained a lot of what was going on. I told him I didn't have much money but I could get interested. Right away he started pushing me to buy several of his recommendations. I told him to send me something to read about his recommendations. He was reluctant at first because I would not buy just on his say so. He finally agreed and advised me to get back to him real soon so I would not miss out on the prices going up.

I got the preferred reading on Pepsico. It was trading at about $39 dollars then. I thought I could buy this. So I called the broker and advised him to buy 10 shares. He said "you want 10 whole shares?". Isaid yes. I didn't realize at the time that he was funning wih me. But I stood fast. He created myaccount and bought the shares. I didn't buy any more or any other security for the next year or so. I watched that stock religiously every day. Finally when it dropped to $33 dollars I told him to sell it. He gave me a hard time about that. He told me the drop was temporary. He said thiswas a rock solid company. I convinced him to sell anyway.

Well he was right. It seems as soon as I sold it it began to rise and it went up and up and up.

It was at that time that I came across a Motley Fool article on the basics of investing. The original education website. I've been a much happier person since then.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement