My 🔟 Biggest Investing Mistakes 🧵
1⃣Only looking at the share price
I bought penny stocks at the start
My logic: 100 shares of $1 stock > 1 share of $100 stock
WRONG!
The price of 1 share is meaningless!
What matters is how great the company is!
2⃣Only looking at dividend yield
I bought stocks with 10%+ yields
My logic: 10% yield > 1% yield
WRONG!
The dividend got cut and the share price dropped -- a double-whammy!
A high yield is Wall Street's way of saying "this yield is not sustainable, watch out"
3⃣Selling a great stock early
I bought $DXCM in 2007 for ~$6
I sold it 1 month later after a 15% gain
Current price: $412.58
I was in a rush to take profits, so I missed out on HUGE upside
If the opportunity is huge, hold!
4⃣Not buying a great stock due to valuation
I've made this mistake over and over again
I didn't buy $ZM at $80 because the valuation was "insane"
Current price: $455
If you like everything about the company except the valuation, but some
Even if it's just a little bit