No. of Recommendations: 23
With the stock's pop today, my Netflix position is up 7,744% (cost basis $3.21). A 78-bagger. Yowza.

All credit goes to David Gardner, who recommended Netflix in Stock Advisor. His recommendation intrigued me enough -- along with my family subscribing to Netflix -- that Netflix was one of the first stocks I bought when I started investing in 2005.

Unfortunately, I did sell 2/3rds of my position earlier this decade when I was raising some money to cover some college bills. I gravitated toward selling stakes in my biggest winners -- Netflix, Chipotle, and Monster -- which I still consider to be the biggest mistake I've made as an investor thus far.

I trimmed the flowers -- the winners -- in my portfolio, rather than cutting the weeds. (Netflix is still my largest single position, but boy... it could be a lot bigger.) I would much rather hold a losing stock too long than sell a future winner too early. Chances are the latter will do far more to damage a portfolio's future returns than the former. You won't enjoy many multibaggers if you don't give the companies time to grow and prove themselves out over a period of years and decades.

Few things are more powerful in investing than finding quality businesses and holding them with extreme patience. That "holding" part is easier said than done, but when you see what happens from diligent patience and holding of businesses like Starbucks, Amazon, and Netflix over a period of 10+ years, it makes it a little easier to sit on your hands.

David K
Print the post  


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.
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.