My Dumbest Investment
Growing up, I witnessed my dad’s great success as an investment banker and knew friends came to him for investment advice. More than 30 years ago, when I was in my late 20s, I begged him for a stock tip. He resisted — strongly — as he didn’t want to be responsible if it didn’t work out. But he finally gave in.
The company he recommended was Sambo’s. My first-ever stock purchase was 100 shares at $4 per share. It wasn’t long after that purchase that the company went bust. My dad had lots of personal stock-investing success — outside of the Sambo’s mistake.
— K. S., Register, Ga
The Fool Responds: Your successful dad is a perfect example of a seasoned investor — they all have both winners and losers in their portfolio’s past. The key is simply to keep learning, from your mistakes as well as from books and smarter investors, so that your winners more than make up for your losers. It’s fine to get tips from others, but always do your own research too, so that you make your own informed decision. ¦
Do you have an embarrassing lesson learned the hard way? Boil it down to 100 words (or less) and send it to The Motley Fool c/ o My Dumbest Investment. Got one that worked? Submit to My Smartest Investment. If we print yours, you’ll win a Fool’s cap!