Canadian Dream suggested that I write about my spending regrets. To be completely honest, I’m extremely picky and analytical before making any big consumer purchase, so I rarely regret what I purchase.
However, I do have a big investment regret that I hesitate to mention, but I will for your entertainment. :)
It was back in 2001 when Nortel was taking the big plunge. Yes, you heard me right, the dreaded Nortel. At the time, I was on a work term with Nortel themselves, so there was a lot of talk about the stock. I was young and extremely new to the stock market but had some cash to “get rich quick with“.
The stock a couple months back made a new high of $120, and the market was euphoric. Those who didn’t get into the stock were hitting themselves for not having the foresight, like myself. The stock starts to drop like dead weight, bargain hunters are starting to watch. As the stock drops to around $60, the office starts to buzz, and one guy drops his entire $50,000 retirement fund into the stock! So I’m thinking, I have $3000 saved, which could easily double to $6000…
My original $3000 investment has turned to $100 and to this day I still hold the stock. Why do you ask? When I get a big capital gain year, I’ll sell my Nortel stock for a loss to off set my gains to reduce my tax payable.
The Lessons Learned:
- Never trade hot stock tips unless you do your OWN due diligence first.
- Don’t jump into the stock market unless you know what you’re doing.
- Don’t invest more than you can afford to lose.
- If you’re going to invest in the market, learn about technical analysis also, it can really help you decide on your buy/sell points.
- Learn from your mistakes!
So that’s my story, do you have an investment regret?If you would like to read more articles like this, you can sign up for my free weekly money tips newsletter below (we will never spam you).