One of Thousands Who Followed the Herd to Big Losses in the Dot Com Era
The worst investment experience in my life was during the Dot Com period of the late 1990s, when almost everyone was a fanatic about the “Internet magic”. I was no exception. Many friends around me were talking about the idea of start-ups and later selling the “company” to some big guys on The Street, such as Yahoo or whoever, and making billions from this…
Read Full PostMissed Opportunity Stems from Hasty Decision on a Stock
A few years ago, I bought a stock at 40,000 Vietnamese Dong (VND) per share (US1.71) after considering that the stock was undervalued. Then, the stock rallied to VND50,000 and dropped back to VND41,000/share. I sold all my stock at this price to protect the VND1,000/share gain! After my apparently overzealous reaction, the share price doubled over the ensuing six months. Lessons…
Read Full PostClassic Bike Collecting Dust Is Better Than a Dog of an Underdog
When initially considering what my worst investment was, I thought about the 50-year-old Royal Enfield motorcycle that I bought in my early 40s (guess why?), which is so delicate that it never works and just stands in my mother-in-law’s garage in Switzerland. But on further reflection, it still makes me happy that I own this bike, which means: “I’m…
Read Full PostSingle Stock Not Best Choice for Long Position on Macro Trend
Prelude I invested in a company operating in a dominant position of its segment within China’s processed–food chain. I liked the investment idea based on the theme that processed food consumption typically rises alongside a country’s rise in income and urbanization. We see this play out when branded products on the shelves of the modern food retail networks replace wet markets, butchers and greengrocers (produce markets). …
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…
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