Let us open with some bad news. I said I would not buy Microsoft because it is too confusing what will happen. In the ended they almost doubled in price in 2 years. Again, I do not have a crystal ball to see the future with. When it's too cloudy I go to a different opportunity. So for not recommending I do apologize but only someone who understands technology really well would have been able to see this coming. I'm not that good at it.
I also recommended to sell Blackberry because their phones were not that great, and I couldn't see the value in the business. I still don't and in the last year and a half the stock has gone nowhere. The new phones some people like but I am not that impressed. Sales are low, and quite frankly their specs still have not caught up to the other large companies. So no I do not have faith in BBRY at this time and thank god I was justified last month as well.
My first two posts shows that I gave advice that made no money. Idiotic, isn't it? So I would say bad things about myself except that I did give some advice that made money. So let's look into that.
Tim Hortons was a stock I recommended about 2 years ago. It was bought out for approximately 50% more than when I recommended it in cash and stock. Considering you had held it for approximately 2 years you got a rate of return of approximately 20% compounded. I was hoping to get that for the next 10 years, but Burger King saw the value and scooped it up at a price I believe will be considered a bargain in the next decade. So good for them. I recommend selling the stock in the new company as it seems a bit overpriced and there are bargains now.
Now we come to Hewlett Packard. This is the company you made the majority of your money in if you only followed my advice. This stock is up a whopping 150% in the last 2 years. Unbelievable right? I recommend a sale only because I think there are better stocks to buy now. Nothing against the company, If you want to hold on to the stock, hold on to the stock, but I am going in a different direction and would recommend a sale.
For those of you who want to know my track record. I only made 3 recommendations in the last 2 years. One of them was an error that I recommended a sale at a 10% loss. The second stock gained 50% and the third one gained 150%. I rounded down the returns because I don't know what price would have been reasonable for people to get into the stock. If that is the case then on average each stock returned 63%. So your average return if you put equal amounts in those 3 stocks on an annual basis is 27%. You can call me lucky if you want, but I was hoping for better returns actually.
The problem you have now if you follow my advice is that all your money is in cash, so what do I invest in? Interestingly enough, if you pay attention to everyday things there is an entire industry that looks to be cheap and I am considering diversifying into that industry. You can call it risky, I do not agree because this industry cannot easily be replaced. See you all soon.
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