Investing business profits

Discussion in 'Building Your Business' started by James, Jan 5, 2016.

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  1. lemon

    lemon Member

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    I used to be involved with oilfield construction. My job was to set up and configure all of the computer systems that automate and control an oil well / battery / plant. Even when the price of oil was high, oil wells were a somewhat risky venture. Anytime I went to work for a smaller company, i'd purchase some of their shares the day that construction was completed. I actually made pretty decent money, about 30% each year for two years. Unfortunately it all went south from there. When oil dipped below $100 I told myself that it was a cyclical industry, and jumping ship over small price fluctuations was stupid and that I should hang in for the long haul. I always invested in small volatile companies with high production costs. I had to, since that's the only way that a change in production would have a strong effect on their market price. So when oil continued to tank my investments also took a nose dive.

    LTS was both my largest success and biggest failure.
    Looking at the linked chart, I bought in early march 2014. There was an initial spike down when some startup issues caused a production delay. But in 2.5 short months the share price went from ~$6 to $8.50. Then oil started to drop, and I tried to hold out until new years 2015 because I am a dumb idiot.

    Now, I'm pretty convinced that the Canadian economy is going to shit the bed, so for now I keep my savings in a USD GIC. Fortunately I bought in before the CAD dropped too much, so if I wanted to cash it out i'd make a decent little profit. But of course this is entirely a fluke, i'm a really terrible investor.
     
  2. cardine

    cardine Administrator Staff Member

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    There are many people who disagree with me, but I personally think it is a suckers game to try to pick individual stocks. Unless you have incredible industry knowledge any of your opinions of the company are likely going to be priced in by someone who has been paying attention to the company far more. For instance if you know a certain product is likely to bomb, it is likely Wall Street knows that as well, so you betting against the company is you betting the company is going to fail even worse than everyone else thinks, which is substantially different from betting that it is going to fail. So any success or failure is going to be fluky and the biggest thing you are doing is magnifying your risk by not being properly diversified. So in my opinion the only time I'd ever invest in a single stock is when I am investing with money I am ok with losing.
     
  3. ...

    ... Established Member

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    There are a bunch of easy stock bets. I bought Yahoo when Marissa Mayer took over. There was no place that could go but up and it did. As much as it sucks now it sucked more then. Same with when Steve Ballmer left Microsoft. No way it can get any worse than with Ballmer leading the way.
     
  4. Daniel@30

    Daniel@30 Member

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    It is always right about the investing business profit.

    Regards,
    PHP Programmer