What have been your worst investments in the stock market? Did you learn anything?

[Valuegrowth]

Thanks justakiwi.

https://www.charles-stanley.co.uk/in...sting-mistakes

Football managers frequently say they learn more about their team from defeats than from victories. It's a similar story for investing.

[QUOTE=justakiwi;1007627]First ever investment back in 2007. Knew absolutely nothing about investing in shares, but purchased on the recommendation of my (now ex's) friend. Fortunately I only had around $2000 invested. Got sucked in by the regular bonus issues - damn, I thought they were the best thing since sliced bread

We all know how that turned out.[/QUOTE]

[Rawz]

Mine is HMY.

The company had a good foothold in the NZ market and then made the typical kiwi company decision to expand over the ditch into the much bigger and harder Aus market.

Management sold us shareholders the dream that the Aussie book would grow quickly and be bigger than the NZ book in no time. They promised to generate cash positive earnings.

Anyways did they do what they said they would do?? Well all you have to do is look at the SP. They say the SP will reflect the company fundamentals. Well the SP is a complete disaster!

[Valuegrowth]

Thanks Rawaz for sharing your experience.

Mine is HMY.

The company had a good foothold in the NZ market and then made the typical kiwi company decision to expand over the ditch into the much bigger and harder Aus market.

Management sold us shareholders the dream that the Aussie book would grow quickly and be bigger than the NZ book in no time. They promised to generate cash positive earnings.

Anyways did they do what they said they would do?? Well all you have to do is look at the SP. They say the SP will reflect the company fundamentals. Well the SP is a complete disaster!

[Azz]

Mine is a gold mine in an ex-Soviet "stan" country, where the 50/50 venture turned into a total loss for shareholders within one of the 50s, as the mafia hoodlums posing as a government one day decided to turn their 50 into 100 by appropriating all assets (as well as kidnapping a few people to make sure there were no issues with the outcome). This is the only time I've lost an entire investment, and in fact it's the only bad investment I've ever made; the rest have all either been out-and-out winners, or I've sold at a reasonably break-even point where I see no future and can use the capital elsewhere. It's hard to learn from this failed venture, however, as at around the same time I made a bundle on a listed copper mine within another dodgy "stan". I guess you could say only do mining investments in politically stable countries with cultures that value words written in contract - but where would be the fun in that?

[Valuegrowth]

Thanks Azz for sharing you experience. Now I like to pick companies with rising cash flow. For me free cash flow yield is a useful indicator for selecting stocks. Not only I will get above average dividends (Dividend champions) but also above average capital gain. In strong balance sheets we find rising cash flow.

https://www.thebalancemoney.com/cash-flow-really-is-king-1200759

Mine is a gold mine in an ex-Soviet "stan" country, where the 50/50 venture turned into a total loss for shareholders within one of the 50s, as the mafia hoodlums posing as a government one day decided to turn their 50 into 100 by appropriating all assets (as well as kidnapping a few people to make sure there were no issues with the outcome). This is the only time I've lost an entire investment, and in fact it's the only bad investment I've ever made; the rest have all either been out-and-out winners, or I've sold at a reasonably break-even point where I see no future and can use the capital elsewhere. It's hard to learn from this failed venture, however, as at around the same time I made a bundle on a listed copper mine within another dodgy "stan". I guess you could say only do mining investments in politically stable countries with cultures that value words written in contract - but where would be the fun in that?

[Bjauck]

Mine is a gold mine in an ex-Soviet "stan" country, where the 50/50 venture turned into a total loss for shareholders within one of the 50s, as the mafia hoodlums posing as a government one day decided to turn their 50 into 100 by appropriating all assets (as well as kidnapping a few people to make sure there were no issues with the outcome). This is the only time I've lost an entire investment, and in fact it's the only bad investment I've ever made; the rest have all either been out-and-out winners, or I've sold at a reasonably break-even point where I see no future and can use the capital elsewhere. It's hard to learn from this failed venture, however, as at around the same time I made a bundle on a listed copper mine within another dodgy "stan". I guess you could say only do mining investments in politically stable countries with cultures that value words written in contract - but where would be the fun in that?

Mine have been in a dodgy “land” country. I bought PEB and OCA for over a dollar and they have been struggling ever since. I have lost thousands.

A family member lost thousands from the same “land” during the 80’s - she invested in Equiticorp and another company. It turned out to be in a Poorly regulated investment environment in a frontier country. I guess I should have learned from their experience?

[Azz]

Mine have been in a dodgy “land” country. I bought PEB and OCA for over a dollar and they have been struggling ever since. I have lost thousands.

A family member lost thousands from the same “land” during the 80’s - she invested in Equiticorp and another company. It turned out to be in a Poorly regulated investment environment in a frontier country. I guess I should have learned from their experience?

Dodgy "land" countries - they're the worst! :-)

[iceman]

My worst investment was Pike River Coal. No need to repeat the sad story and loss of lives here, but 100% of capital was lost

[Valuegrowth]

Thanks Iceman. Current financial system is not risk free. Even long term investment is not risk free. One thing is sure. People who invest in companies who produce basic needs which have demand for those products in good and bad times can't go out of business unless they mismanage badly.

My worst investment was Pike River Coal. No need to repeat the sad story and loss of lives here, but 100% of capital was lost

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