My Worst Investing Mistakes

My investing career started early in life. Back in high school I ran a social studies project where we bought shares in a junior mining company. We made some money and then I decided to buy out everyone else and hold the stock myself. Well that didn’t go so well. After a few years I owned about $25 of stock out of my original $200. I sold and avoided the stock market for years, but I still didn’t learn my lesson yet.

Now my current mistake is a diamond mine, Tahara (TAH), I bought over a year ago back when the mine wasn’t even open yet. There was a lot of hype around the stock and it climbed for several months and I had this feeling at one point I should just take my gains and run. I didn’t. Now the stock, even after a reverse share split, has fallen to the point of being a penny stock again.

Yet strangely enough I have no current plans to sell the stock. I bought it with a different frame of mind this time. I know that I’m speculating and I realize that that is not the same as investing. I also realize that I don’t have very much money invested into the company so if it bottoms out and I have nothing. I’m not worried, because this is my form of lottery tickets. Perhaps this is the reason I have gone to index investing with my RRSP.

It’s been an entertaining ride so far and I promised myself I would give the company five years after start up to see if they can’t make a go of it. Even if I just take a lose at the end, at least I get to claim a capital lose on my tax form.

So what was your worst mistake? If you feel like sharing, please leave a comment.

5 thoughts on “My Worst Investing Mistakes”

  1. Anyone who has invested in stocks has a story to tell on their biggest mistakes. 🙂

    Mine.. well, I invested in the mightly Nortel when it tumbled from $120 -> $60. I bought it because i thought, “it can’t go any lower than this”. In my defense, at the time, I didn’t know a lot about the stock market, just knew how to buy the hype. Lesson Learned: Never try to catch a falling knife.

    FrugalTrader
    http://www.MillionDollarJourney.com

  2. Dumbest mistakes in the past:
    – Speculating in options

    Other things:
    – Selling ESPP stock @ .72 / share or so right after receiving semi-annual shares (made about 15% or so since that is what it was discounted at) – out of fear and not researching the company better at the time and taking a more objective fundamental view of the company…was worried because it was at the time of the tech bubble, anyway had I held a few years I would have made about 10 times easily 😛

  3. Wow that was strange. I just wrote an really long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Regardless, just wanted to say great blog!

  4. A large percentage of of whatever you articulate happens to be astonishingly precise and that makes me wonder why I hadn’t looked at this with this light previously. This article truly did turn the light on for me personally as far as this specific issue goes. Nevertheless at this time there is actually 1 position I am not really too comfy with and while I make an effort to reconcile that with the actual central idea of the issue, allow me see just what the rest of the subscribers have to point out.Nicely done.

Comments are closed.