2017-05-18 / The Motley Fool

My Dumbest Investment

Insignificant Losses

I’m not ashamed to admit that my dumbest investments were when I got into penny stocks. I subscribed to a newsletter that offered “advice” on penny stocks for quick wins. I spent a whopping $85 on Valentine Beauty. Today I can’t even unload it because nobody wants to buy it. Ha.

Around the same time, I was working for a small company, and a co-worker said he had a hot tip: Creative Edge Nutrition. It was going to make a fortune in the marijuana business. The stock hardly moved from what I bought at. I sank $300 into that one.

I still have these “oopsies” in my portfolio as a reminder not to believe anyone about anything, to do due diligence before making a move and that penny stocks are very risky. I’m lucky that my losses were insignificant as I gently eased into the pool of investing. Four years later, I feel much better about playing the game of stocks.

— D. B., St. Clair Shores, Michigan

The Fool Responds: Even though a particular industry might seem like it’s poised to grow briskly, not every company in it will succeed. For best results, look for companies that have track records of growing revenue and profits. And try not to think of the stock market as a game to play. Remember that your hard-earned dollars are at stake. You can grow wealth without unnecessary risk. ¦

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