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clock Created with Sketch. 15/03/19
19:36
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Originally posted by YankieTank:
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Wow, 40k on a speccy. You got bigger b...s than me mate. I've got 7k locked in plus CR and I'm not even a gambler, go figure. I was in my doctors office as few weeks ago and after he saw me in the waiting room on HC, he admitted that he follows it too and even showed me that he had it on a tab on his computer which he switches over to inbetween patients. So we get talking about all things sharemarket and he admitted to me that he withdrew 150k out of his mortgage to put on a spec lithium stock that's currently around 2.5c. He certainly doesn't apply the old adage of don't invest more than you can afford to lose. If it went bust, he admitted he would be feeling that pain for a lot of years, not to mention the possible breakdown of his marriage. Kinda makes you wonder why some invest nearly everything they have in a spec stock and only one stock as well instead of multiple different ones. I know Bas mentioned once that normally only one in ten specs ever go onto becoming something substantial. With lots and lots of research you may be able to increase those odds slightly, maybe two in ten or even three if you're extremely lucky. I asked him why didn't he invest say 15k into ten different specs in different sectors. He was told it's a sure thing. I really hope for his sake it is. Currently he's down 60%. Kinda shows that no matter who you are, how well educated you are, Any of us can be blinded by hype of an industry or stock. The spec end of the market.....shows no mercy. One thing I've learnt in the short few years I've been investing is to buy the best quality possible with businesses with as high a MC as I can afford. Perfect example was APT. I became aware of them when there shares hit $5. I thought I had missed the boat as they had risen tremendously in the previous weeks. After seeing their MC approaching 1Bill I thought even more so that I had missed out. I liked the idea a lot though and there was talk of expanding exponentially. I like buying shares in multiples of 10 or 100k lots but this time I bought 1000 shares, the smallest parcel I own. Now they are $20 plus and have been the best performing stock I own. While I still love the opportunities that come with specs, it was a valuable lesson. Sure you may not make 10, 20 or 100 bags but as long as your portfolio is out performing bank deposits and the like then it's doing what you want it to do. Sure we all want that big 100 bagger so we can retire or whatever but man these specs can be so risky. I'm not giving up on them though, I will always have two or three in my portfolio but the majority of my funds will be in higher quality, less risky stocks now.
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"Kinda shows that no matter who you are, how well educated you are, Any of us can be blinded by hype of an industry or stock. The spec end of the market.....shows no mercy. " @YankieTank - not sure - but well written anyway.
