Lesson I learned from my investing failure

Lesson I learned from my investing failure
6 years ago when I first started buying common stocks in Taiwan market, I made a mistake which I still remember like yesterday. I bought the stocks of (2419) Hitron Technology which started their internet service provider business and was claiming to be number 3 on the island. It was original a network and broad band device Manufacture Company. I guess I was so influenced by the internet startup and story surrounding internet business all seem to be exciting. At first the stock price go up from 70 to 200, but I was so confident in myself and thinking I was doing long term investing. So I did not sell a share. Then it drop from 200 to 7 or so. I waited on it for 3 years; Later the company had sold all of his internet business to others and focused back to its manufacture business. Eventually I admitted my failure and sold them all out at 16. After one year, now the company’s price is at the range 15. The lesson I learned is “Don’t invest on dreams.” From that day on, I only buy stocks which had a real profit for a long time. No startups, No big dreams. Whenever I have a profit substantial, I took a little even when I plan to hold on to the stock for the long term. If you want to do long term investment, you can not base your decision on a dream. You must base on record of continuous profits. If you want to hold the stock for 10 years, you’d better invest in a company with more than 10 years of good records. Don’t use a short term strategy on long term investment plan.

Though this is really basic stuff. When I look back my past, this kind of stupid mistakes make me feel really bad. If you ever want to start investing. Remember the basic stuff. Invest only in company with real profit not company with only a dream.

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- by pjhuang @ 2/10/2004 07:53:00 下午

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關於作者：認證理財顧問黃柏仁，致力於上班族之理財規劃服務，按這裡到上班族投資理財部落格閱讀更多文章

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