Overreliance on or Ignoring the Experts Can Both Do Damage
My worst investment, in terms of stupidity, but not the biggest loss, was when I started acting on information I heard on a radio program about investing in stocks. Past performance is no guarantee of future success I had listened to this show and had been very lucky with my first investment; a…
Read Full PostAlways View Yesterday’s Successes Through Today’s Glasses
When I was younger and not so financially “sophisticated”, I used to work for one of the largest international general contractors in the world. In theory, it should have been a good idea to invest in the company I worked for As part of my 401(k) plan, I was given the choice of different…
Read Full PostHow Poor Execution Turns a Great Idea into the Worst Investment
Prelude In early 2017, I was shown an opportunity to invest in a US$6.5m simple agreement for a future equity (SAFE) note issued by BuildDirect.com Technologies Inc., a $1bn Canadian e–commerce company. All of business’ facets looked solid My client had made previous investments in the company and had a strong conviction in the team, the company, the market and this “new marketplace” opportunity. The company sells heavy construction supplies, such as tiles and…
Read Full PostFutures Investor Takes Eyes Off the Ball and Pays the Price
Prelude Around 2013-2014, I had a short-term market speculative position on the Thailand Futures Exchange (TFEX) using a SET50 Futures contract. One day, the market slid around 10% because of political unrest, and I was on the losing side of the equation. Too busy to watch an investment It was a busy day at work, and I would generally not think too much about my position unless I received a call from my broker. I received a call. My broker told me that my position had to be forced closed. At the time, I was…
Read Full PostHow a ‘Good Company’ Can Still Mean a Bad Investment
During my very early days as an equity investor, I invested in a high-quality coal miner that was the market’s darling at the time. It had survived the 2008 financial crisis unscathed and delivered stellar returns in a falling market.
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