Thread, how did you do in 2003? What was your best or worst move? Regrets? Lessons learned?
Confessions and sharing are good for the soul and helps one learn, I believe, and I'm not even Catholic! ;>)
I'll go first.
I did 42% last year, and although others at SI smoked that return, I am very happy with it. Moreover, I feel like I'm making smarter investments.
My best gain, and one that I am quite proud of, was PRX, a beaten up generic drug company that had a good pipeline, patents, business wins, and a growth story when I found it in the spring of 2002. Sold my last lot two months ago for a 214% gain.
Another good pick last year was TVIN in July, picked up somewhere on SI (Dale?). Sold most of my position for a 145% gain after it started to fall and I got spooked after it had run so far so fast.
I'm trying to learn to limit my losses; unlike earlier years, my worst sale in 2003 was BRCD (-14%) which I bought for a trade and held an unusually short time (for me). Of course, there is one position remaining that I stubbornly hold on that is significantly under water! (IIH, down so far that it's hardly worth selling.)
Finally, I think the biggest lesson (one that must be a hold-over from the bubble) is trying not to get spooked or impatient and sell too soon. One regret in 2003 had to do with stocks I had bought a few years ago and rode down and waited and waited and then finally gave up on, the who's who of the bull salad days: AOL, SNDK, CSCO, AMAT. Similarly, I realize my tendency not to buy more of a stock that has disappointed me, like a jilted lover, when the fundamentals are actually starting to improve.
Another regret has to do with selling strong stocks too early, sometimes based on anxiety over a falling chart or a desire to lock in profits or some temporary negative news: DHB, MRGE, TOL, selling PRX at $53 and $64 on its way to $75.
Also, I'm learning to trust my analysis when the market seems to think otherwise. I need to take bigger stakes in stocks I've researched thoroughly and believe in, or add to positions after a pull-back. Recent examples under 4% of my portfolio: WRLD, IDR, TYC. CD last year. |
