Skip to main content
No. of Recommendations: 0

Thanks for the valuable information.

I am a new investor, and have already made a new investor mistake: I recently took a loss in one of my mutual funds (Longleaf Partners), because after little more than a year(!!!) I got too worried that it was not going to turn around. (I lost faith that the fund managers - who are supposed to be some of the best in the industry - knew what they were doing). I got out three days ago - JUST before the Dow started its big climb upward. I had spent weeks agonizing about whether or not to hold on, and weakened just when I should have stayed strong. I let "experts" (who had been preaching that "value" stocks were part of the old economy) overrule my common sense.

Now I am kicking myself, because - like you - I believe strongly in buy and hold investing (and know in my heart how returns average out over time.)

Well, a lesson learned. The next mistake I worry that I've made is that I recently bought Cisco Systems stock (even though the PE ratio is astronomical.) Do you think it's ever justified to ignore this kind of PE? I've been told that I might as well have taken a loaded gun to my head and pulled the trigger...

As a new investor, it's easy to let what others say influence decisions. Some of the "old-line" thinkers say "no, it's NEVER justified", while others - one springs to mind that I listened to on Luis Rukeyser's show the other night - say people shouldn't worry about the high cost of technology stocks, they should only worry about not owning them.

I just hope I don't lose TOO much money as I blunder my way along...
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.