It was March 2009, and I looked at the markets and the S&P500 was at 700. It was insanity, the economy had shrunk by 50% in less than 6 months, at least according to the markets and I convinced myself that it couldn't be right. I did a lot of research and I bought big (into 3 stocks, 60% of my liquid assets), for the first time in my life. Then two months later, the S&P was at 950. The market rose by 35% in two months! I thought I had hit the jackpot, I got nervous, I sold everything and cashed out. Today, the S&P is at 1300.
I bought SOL at 2.86 and sold at 4.04 (+42%), today it's at 11.54 (+303%)
I bought TXT at 3.87 and sold at 7.07 (+83%), today it's at 27.15 (+603%)
I bought PMI at 0.67 and sold at 1.39 (+107%), today it's at 3.03 (+352%)
On a smaller scale
I bought JASO at 3.07 and I still own it at 7.35
I bought AAPL at 164.25 and I still own it at 348.16
I bought C at 2.70 and sold at 4.10 (+52%), today it's at 4.70 (+72%)
Like a coward, I sat out the second half of the rally (May 2009 - August 2010), and only started buying "conservative" large caps last September. I estimate I left $50K out there by selling early. I don't know if there is a moral to the story, or whether I did the principled thing, but there sure is some regret.
How I (mostly) missed the chance of a lifetime
February 27th, 2011 at 02:54 am
February 27th, 2011 at 12:10 pm 1298808652
February 27th, 2011 at 01:40 pm 1298814042
I hear tales all the time of people who bought high before the dot.com bust and then sold low. Now, that's a sad story!
February 27th, 2011 at 03:24 pm 1298820287
That said, I remember when the DOW hit 700-ish and I plowed some money into the stock market. I meant to keep it in their for the LONG run. I don't think I had ever seen the market lower, in my lifetime. So, I think the only thing you could have done better was a long-term investment. For the short run, quitting while ahead is good.
February 28th, 2011 at 12:47 am 1298854027