Biggest Investment Mistakes you have ever made.

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PANDA_IHB

PANDA_IHB

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Right after graduating from college in 1998, I started to follow the herd and loaded up on tech stocks i.e. Cisco, Sun Microsystems, Exodus Communications, Amazon. I also bought RS Emerging Growth, Janus Mercury, Janus 20, Internet Index, and the Ecommerce Index. I remember i had about 50% of my entire portfolio banking on Cisco Stocks at almost $100 a share. When the bubble popped in April of 2000 I lost 80% of my entire portfolio. Here is the kicker, I was so arrogant that i can beat the market by a wide margin, I convinced Panda's mom if i could invest $20,000 of your her money so that i can invest all of it in internet stocks. I told my poor mom that i would get her a 90% return on her investment in just one year. STUPID PANDA!



Unfortunatley, I lost it all. About 5 years ago, I paid her back in full with interest :) My mom was laughing at me and told me that she never thought i would pay her back. Even my wife laughs at me when i tell her this story. Looking back at this experience now, I am so glad this happened to me in my early 20s, and not in my early 30s. Anybody else want to share some of the worst investments you made in real estate or the stock market? Perhaps, it can be a learning experience for all of us.



"Don't be shy, We are all one BIG HAPPY family here on the Irvine Housing Blog"
 
[quote author="PANDA" date=1219821763]Right after graduating from college in 1998, I started to follow the herd and loaded up on tech stocks i.e. Cisco, Sun Microsystems, Exodus Communications, Amazon. I also bought RS Emerging Growth, Janus Mercury, Janus 20, Internet Index, and the Ecommerce in Index. I remember i had about 50% of my entire portfolio banking on Cisco Stocks at almost $100 a share. When the bubble popped in April of 2000 I lost 80% of my entire portfolio. Here is the kicker, I asked Panda's mom if i could invest $20,000 of your her money so that i can invest all of it in internet stocks. Unfortunatley, I lost it all. About 5 years ago, I paid her back in full with interest :) My mom was laughing at me and told me that she never thought i would pay her back. Looking back at this experience now, I am so glad this happened to me in my early 20s, and not in my early 30s. Anybody else want to share some of the worst investments you made in real estate or the stock market? Perhaps, it can be a learning experience for all of us.



Panda Dreaming of Irvine.</blockquote>


In '99 I quit my day job to trade for a living... I rolled over my pension (only $50K or so accumulated) into an IRA and had it 100% invested in aggressive tech. By the time the bubble deflated, it had dropped to $10K or so. It's back up to $25K today.



One day during 2000, Copper Mountain Networks moved aggressively in the wrong direction on me. I had a sizable leveraged position at the time and couldn't get out during after hours as it was in a freefall. I sold at open the next morning and had lost $20K overnight. Total loss on CMTN over a span of around 16-17 hours was almost $35K.



It wasn't long after that I started looking for real job again :)
 
[quote author="PANDA" date=1219821763]Right after graduating from college in 1998, I started to follow the herd and loaded up on tech stocks i.e. Cisco, Sun Microsystems, Exodus Communications, Amazon. I also bought RS Emerging Growth, Janus Mercury, Janus 20, Internet Index, and the Ecommerce Index. I remember i had about 50% of my entire portfolio banking on Cisco Stocks at almost $100 a share. When the bubble popped in April of 2000 I lost 80% of my entire portfolio. Here is the kicker, I was so arrogant that i can beat the index by a wide margin, I asked Panda's mom if i could invest $20,000 of your her money so that i can invest all of it in internet stocks. STUPID PANDA! Unfortunatley, I lost it all. About 5 years ago, I paid her back in full with interest :) My mom was laughing at me and told me that she never thought i would pay her back. Even my wife laughs at me when i tell her this story. Looking back at this experience now, I am so glad this happened to me in my early 20s, and not in my early 30s. Anybody else want to share some of the worst investments you made in real estate or the stock market? Perhaps, it can be a learning experience for all of us.



Panda Dreaming of Irvine.</blockquote>
I applaud you for paying your mother back - and with interest.
 
[quote author="CalGal" date=1219822687][quote author="PANDA" date=1219821763]Right after graduating from college in 1998, I started to follow the herd and loaded up on tech stocks i.e. Cisco, Sun Microsystems, Exodus Communications, Amazon. I also bought RS Emerging Growth, Janus Mercury, Janus 20, Internet Index, and the Ecommerce Index. I remember i had about 50% of my entire portfolio banking on Cisco Stocks at almost $100 a share. When the bubble popped in April of 2000 I lost 80% of my entire portfolio. Here is the kicker, I was so arrogant that i can beat the index by a wide margin, I asked Panda's mom if i could invest $20,000 of your her money so that i can invest all of it in internet stocks. STUPID PANDA! Unfortunatley, I lost it all. About 5 years ago, I paid her back in full with interest :) My mom was laughing at me and told me that she never thought i would pay her back. Even my wife laughs at me when i tell her this story. Looking back at this experience now, I am so glad this happened to me in my early 20s, and not in my early 30s. Anybody else want to share some of the worst investments you made in real estate or the stock market? Perhaps, it can be a learning experience for all of us.



Panda Dreaming of Irvine.</blockquote>
I applaud you for paying your mother back - and with interest.</blockquote>


Yeah, but I bet he didn't compound it...
 
My biggest investing mistake was getting cold feet and dumping my portfolio in 1998. Two years too early. I bought it back in like 2004. So I'm way up for the decade.



Frankly, I was afraid of liquidity risk and didn't want to get caught out when the market turned.
 
[quote author="CalGal" date=1219823044]My husband has a friend who recently quit his job to day trade - <strong>with the equity of his house.</strong> :grrr:</blockquote>


Oh my, that is bravely stupid. To momentum trade successfully, one needs to be able to buy large, wait patiently for the small move in the right direction, and get out with profit in hand. I was too chicken to buy big enough and was always trying to swing for the fences. I got burned too much as a result.
 
The biggest mistake I've made is to sell the 1000 shares of Microsoft that I bought in 1980s for $5K gain. If I hold on I could have been multi-millionaire, ten times over. I did not need the money, I just had the mentality of trader more than an investor. I love trading, eventhough I did not quit my day job to trade but I parked my brain on the job and trade everyday for a year. I made $29K on top of my salary but my job suffered.
 
The biggest mistake I?ve made is to sell the 1000 shares of Microsoft that I bought in 1980s for $5K gain. If I hold on I could have been multi-millionaire, ten times over.



:shut: :shut: :shut: :shut:
 
I bought a jumbo box of alcohol wipes at Costco once because it seemed like such a bargain, and used them to clean my glasses and destroyed the anti-reflective coating and had to fork out for a new pair. Does that count? :)
 
The biggest mistake I made was over improvement on my first home thinking that I will be living there forever. Oh boy was I way wrong!!! I lost everything there.



Rule #1 never over improve a home in a cookie cutter neighborhood and especially an old one because of comps.

Rule #2 never buy the most expensive house in a cookie cutter neighborhood because it can only go down but up.

Rule #3 No one can stand living in a cookie cutter neighborhood for more than 5 years.
 
[quote author="Astute Observer" date=1219841589]I am not too sure about the #3. I am on my 8th years, and should be eligible for early release due to good behaviour in about two more years.



My biggest mistake was buying stocks back in the tech boom, like many of you. "Making" $5K in a day without doing any work really is addictive. Thinking back, if I use the money to buy gold/RE, I would be able to drive around in a different Italian sport car every day of the week. :sad:</blockquote>


Asians on the average stay in a cookie cutter house for about 8 years while Caucasians for 5 years before moving to another house. My research also indicates that Asians often stay at the same home longer because of kids' school.
 
<blockquote>Right after graduating from college in 1998, I started to follow the herd and loaded up on tech stocks i.e. Cisco, Sun Microsystems, Exodus Communications, Amazon. I also bought <span style="color: red;">RS Emerging Growth</span>, Janus Mercury, Janus 20, Internet Index, and the Ecommerce Index. </blockquote>
Panda, <a href="http://www.rsinvestments.com/gis/performance/historical-performance.html">RS Emerging Growth Fund</a> had a slam-dunk 1999 (+182.56%). We're big fans of RS Investments.
 
[quote author="CalGal" date=1219885123]<blockquote>Right after graduating from college in 1998, I started to follow the herd and loaded up on tech stocks i.e. Cisco, Sun Microsystems, Exodus Communications, Amazon. I also bought <span style="color: red;">RS Emerging Growth</span>, Janus Mercury, Janus 20, Internet Index, and the Ecommerce Index. </blockquote>
Panda, <a href="http://www.rsinvestments.com/gis/performance/historical-performance.html">RS Emerging Growth Fund</a> had a slam-dunk 1999 (+182.56%). We're big fans of RS Investments.</blockquote>


Then I am pretty sure i bought RSEGX at the 70 range in early 2000 than rode that baby down all the way to high teens.



Panda
 
[quote author="PANDA" date=1219886496][quote author="CalGal" date=1219885123]<blockquote>Right after graduating from college in 1998, I started to follow the herd and loaded up on tech stocks i.e. Cisco, Sun Microsystems, Exodus Communications, Amazon. I also bought <span style="color: red;">RS Emerging Growth</span>, Janus Mercury, Janus 20, Internet Index, and the Ecommerce Index. </blockquote>
Panda, <a href="http://www.rsinvestments.com/gis/performance/historical-performance.html">RS Emerging Growth Fund</a> had a slam-dunk 1999 (+182.56%). We're big fans of RS Investments.</blockquote>


Then I am pretty sure i bought RSEGX at the 70 range in early 2000 than rode that baby down all the way to high teens.



Panda</blockquote>
:shut: That must have been a hard pill to swallow.



Do you still use RS Funds? We currently have them in our portfolio.
 
[quote author="PANDA" date=1219886496][quote author="CalGal" date=1219885123]<blockquote>Right after graduating from college in 1998, I started to follow the herd and loaded up on tech stocks i.e. Cisco, Sun Microsystems, Exodus Communications, Amazon. I also bought <span style="color: red;">RS Emerging Growth</span>, Janus Mercury, Janus 20, Internet Index, and the Ecommerce Index. </blockquote>
Panda, <a href="http://www.rsinvestments.com/gis/performance/historical-performance.html">RS Emerging Growth Fund</a> had a slam-dunk 1999 (+182.56%). We're big fans of RS Investments.</blockquote>


Then I am pretty sure i bought RSEGX at the 70 range in early 2000 than rode that baby down all the way to high teens.



Panda</blockquote>


RSEGX is a 2-star fund that hasn't been in the top 25% of its category on a 3, 5, or 10-year annualized basis... Surely there are better small growth funds out there.
 
[quote author="ipoplaya" date=1219887783][quote author="PANDA" date=1219886496][quote author="CalGal" date=1219885123]<blockquote>Right after graduating from college in 1998, I started to follow the herd and loaded up on tech stocks i.e. Cisco, Sun Microsystems, Exodus Communications, Amazon. I also bought <span style="color: red;">RS Emerging Growth</span>, Janus Mercury, Janus 20, Internet Index, and the Ecommerce Index. </blockquote>
Panda, <a href="http://www.rsinvestments.com/gis/performance/historical-performance.html">RS Emerging Growth Fund</a> had a slam-dunk 1999 (+182.56%). We're big fans of RS Investments.</blockquote>


Then I am pretty sure i bought RSEGX at the 70 range in early 2000 than rode that baby down all the way to high teens.



Panda</blockquote>


RSEGX is a 2-star fund that hasn't been in the top 25% of its category on a 3, 5, or 10-year annualized basis... Surely there are better small growth funds out there.</blockquote>
We aren't invested in their Emerging Growth fund right now. We use Emerging Markets, Core Equity, and Mid-Cap Value.



However, watch their Emerging Growth Fund as we come out of the Recession. That fund is known to do very well whenever the US comes out of a recession. I heard something that within the next 180 days this fund should do very well.
 
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