Navigating Investment Missteps: Reviewing some of my mistakes

Posted on March 12, 2024

Investing often involves a delicate balance between confidence and caution, and there's no clearer mirror to my choices than the performance of my investments. Sometimes, even the most well-intentioned advice can lead me astray, resulting in financial losses. Here's a look at where things didn't pan out as expected.

Farfetch: The Lure of Expert Endorsements

Farfetch appeared as a shimmering opportunity, backed by my asset management firm's strong recommendation. Seduced by their aggressive growth strategies, I overlooked the due diligence required to vet the viability of a luxury online retailer unfamiliar to me. The result? Farfetch’s bankruptcy laid bare the peril of trusting recommendations at face value. Purchased with optimism, Farfetch became a stark lesson in the value of personal evaluation over persuasive pitches. I´ve basically lost all of the capital that I employed into Farfetch or 98.74% to be precise.

Alibaba and Tencent: Not for me

Alibaba's stake came with a seal of approval from none other than investment legend Charlie Munger. It may certainly have been an investment pegged for the long haul, reminiscent of Munger's style. Yet, the Chinese market isn´t necessary fond of openess and the anticipated gains may be realised only in a very distant horizon. I´ve lost a total of 44.44% of my capital initially invested into Alibaba

My venture into Tencent was a similar story. As of today, I´ve lost around 31.69% of the initial capital employed. The market's reception to Chinese tech shares has been a reality check on the unpredictability ofthe chinese environment.

Shimano and paypal: A Test of Patience

Shimano, the renowned bicycle component maker, seemed a sure bet. Everyone needs bike parts, right? And with Japanese equities on the rise, it felt like a smart move. I´m so far around 23.72% in the red. I'm giving it a few more months, hoping the market catches up with my expectations.

As for PayPal, this isn't a long-term play, but rather a calculated risk with a shorter fuse. It's a waiting game, and in the coming months, we'll see if it pays off. Unlike other bets, PayPal’s position in digital payments gives it a fighting chance to rebound quickly.

Concluding Thoughts

The stock market is indeed full of opportunity, but it's also riddled with hard truths. Investments like Alibaba and Tencent serve as reminders that even with guidance from industry titans or trusted firms, there are no guarantees. The value lies not in the losses themselves but in the experience gained. Its my own research and the time and effort I put into thinking what equities or asset classes will yield a return that has so far yielded the best returns. Each setback I see as a nudge towards more independent analysis and a more grounded approach to the swirling advice of the financial world.

Losses can sting, but they're also the most profound teachers I have, providing lessons that no webinar, analyst call, or investment book can offer. Moving forward, it’s about using these lessons to navigate the stock market with a keener eye and a more self-reliant stance.

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