Skip to main content
No. of Recommendations: 4
Marc,
I had been investing the wrong way for a number of years. I had a core portfolio of safe companies and then attempted to speculate around big ideas. I bought Lumber Liquidators after the 60 minutes article (it turns out people don't want asbestos around their kids). I bought Haliburton when oil went from $100/barrel to $40. (yeah, it hasn't quite gotten back to $100, has it?) Fortunately none of those dumb ideas crushed me. I feel like I'm on track because of 2 things that I did:

1.) In 2017, I subscribed to a Fool portfolio service that focused on small caps (rising stars). The premise is that small caps are generally under-followed and that there is more upside than buying big companies (for Amazon stock to double it has to get to $2T market cap, although it started as a small cap). I invested dutifully in the 40 companies. And, as predicted by the Fool team, a few companies would grow and grow and grow, dwarfing other companies in the portfolio. The gains of a few would make the laggards irrelevant. (rule - water your flowers, not your weeds. Don't double-down on losing stocks). One of those companies is up 647% since my first purchase and resides in Saul's portfolio (and is still in mine after adding to it many many times). The experience has been an extremely valuable lesson for me.

2.) In the winter of 2018, I drove a truck with some of my household goods (and ~75 cases of wine) for 3 days. To pass the time, I listened to the Rule Breaker Investing (RBI) podcast. I covered about a years worth of podcasts over those few days. David Gardner has it right. Winners win. What stocks are NOT Rule Breakers? ALL OF THE ONES I HAD BEEN INVESTING IN prior to 2017. I still listen to the podcast and subscribe to Rule Breakers and Stock Advisor. I do not shop for stocks on the 52 week low list. And, I don't really care that the pundits call them overvalued. The companies are changing the world. (start with a small position with those you have conviction and add when you can)

If I sound like I agree with Denny, I do. Congrats on starting your journey!

Fool On,
JP
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.
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.