Why I'm A Bad Investor (Podcast)
by Daniel Shvartsman
Listen to or subscribe to Behind the Idea on these podcast platforms:
- iTunes/Apple Podcasts
Over the last two weeks, Mike and I have pitched respective long ideas. It's a way for us to put our skin in the game and share how we approach a stock in our own investing, after nearly two years of reviewing other people's ideas.
This week, we looked backward at mistakes we've made in our investing careers. The theory goes that your investing mistakes also amount to your investing tuition, and that true wisdom is learning from others' mistakes, rather than your own. I can only hope there's something for you as listeners to learn from our mistakes, as broken down on today's podcast.
The investments in question date to 2016 and 2017. Mike went long on Gilead Sciences (GILD) based on its scientific prowess and low multiple, and even as his thesis sailed on him with Gilead's acquisition of Kite Biopharma, he couldn't find the exit door. I went long Uniti Group (UNIT), even having concerns about its failure to cover its dividend and what the huge yield portended, let alone the binary risk that was introduced into the stock. I didn't take a chance to get out when I could. Even typing that, I can see how common our mistakes are, so I hope you can take something away from this for yourself and your own wisdom. Click play above to have a listen.
- 4:00 - Mike's bad choice (Gilead)
- 6:00 - What was compelling about GILD?
- 10:45 - At the time of purchase, did you have any concerns?
- 14:30 - How did the investment play out?
- 18:30 - When did you realize it wasn't working?
- 25:00 - What are the lessons learned?
- 28:00 - Daniel's bad choice - Uniti Group
- 29:30 - What was your thesis?
- 38:00 - Specific downside concerns
- 41:00 - When did you realize it wasn't going well?
- 55:30 - What lessons did you learn?
We're pulling up to our 100th episode, coming out next week, which will feature lessons learned from the first 99 episodes. If you have any questions, input, suggestions, or anything else, let us know below or email us at btipod at seekingalpha.com.
See also Merger Mating Dance: We Explore Who Gets The Rose Next - Sectors And Targets, Part I on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.