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When It’s Bad To “Set It & Forget It”
Or
How I made a 57% loss in a supposedly very stable value stock.
A
Or
How I made a 57% loss in a supposedly very stable value stock.
A
In 2014, a super smart friend who’d just started his own investment fund advised me to invest in GE, IBM, CocaCola, Exxon & forget it. So I did just that.
Reinvest the dividends and let compounding do its thing.
Buy it & forget it. Right?
Reinvest the dividends and let compounding do its thing.
Buy it & forget it. Right?
I bought GE stock in March 2014. What a great company and dividend yielding stock, I believed.
GE was doing pretty well after recovering from the Financial crisis of 2008.
So when there was dip in Mar 2014, I BTFD
GE was doing pretty well after recovering from the Financial crisis of 2008.
So when there was dip in Mar 2014, I BTFD
I was happy with the dividends and GE Stock grew modestly.
I was feeling rather good.
And Then all Hell Broke Lose. https://www.fool.com/investing/2018/12/10/the-fall-of-a-blue-chip-general-electrics-horrible.aspx
I was feeling rather good.
And Then all Hell Broke Lose. https://www.fool.com/investing/2018/12/10/the-fall-of-a-blue-chip-general-electrics-horrible.aspx
2017: Bad CEO out , I’m thinking, yay, now things will be good again
Too much debt in Balance Sheet (BS). Bad Shaheeda didn’t pay attention to the BS
2018: New CEO takes over.
Oh no, $6.2 B Reinsurance Liabilities Charge
Stock
New CEO fired after 6 months.
Too much debt in Balance Sheet (BS). Bad Shaheeda didn’t pay attention to the BS
2018: New CEO takes over.
Oh no, $6.2 B Reinsurance Liabilities Charge
Stock
New CEO fired after 6 months.
I still think the restructuring plan would work; after it’s a 100+ yr company.
By now my investment is in GE is already in losses.
I say, “Well, it’s on paper right? I don’t need the money now, so I’ll hold.”
By now my investment is in GE is already in losses.
I say, “Well, it’s on paper right? I don’t need the money now, so I’ll hold.”
2019: GE’s underlying problems didn’t go away. Debt is still massive.
I finally GTFO. I sold.
Bought GE at $25.44;
Sold GE at $9.28 4/19
After dividends, total loss 57%
You know what hurts?
Had I bought $SPY, I would’ve made 72% in the same period instead of losing 57%
I finally GTFO. I sold.
Bought GE at $25.44;
Sold GE at $9.28 4/19
After dividends, total loss 57%
You know what hurts?
Had I bought $SPY, I would’ve made 72% in the same period instead of losing 57%
Not to worry, I have a happy ending!
In Aug 2019, I bought $ZM (Zoom).
I made 300% on it. I missed the opportunity to sell when it was up 450%
I’m happy
Always do your homework.
Read
Don’t be complacent.
Past performance is no guarantee for the future
In Aug 2019, I bought $ZM (Zoom).
I made 300% on it. I missed the opportunity to sell when it was up 450%
I’m happy
Always do your homework.
Read
Don’t be complacent.
Past performance is no guarantee for the future
Reading the news 
is really important.
DOW literally BOOTED $GE off its index in 2018. Get this, GE was replaced by Walgreens-BOOTS !
If that wasn’t an
& 
, I don’t what else could be! And I still chose to believe my own gut without proper research.
Learned
End
is really important.DOW literally BOOTED $GE off its index in 2018. Get this, GE was replaced by Walgreens-BOOTS !
If that wasn’t an
& , I don’t what else could be! And I still chose to believe my own gut without proper research. LearnedEnd
Ps: sorry about typos or grammatical mistakes above 
I really wish we could edit. But not to fret, I’ll do a short blog with more details on the same topic soon.
I really wish we could edit. But not to fret, I’ll do a short blog with more details on the same topic soon.
