Tag: stocks

The Lesson of My Netflix Investment Mistake

I have been investing in the stock market since my first year out of college. I knew that it was important to not just work for money but to make money work for you. You can read Robert Kiyosaki’s works for more pithy moneyisms like that.

As an investor I have had plenty of successes. I have had plenty of failures. Kinda like a typical country song. But I have become much better at evaluating stocks and recognizing great buying opportunities over time.

Today, when I review my investments, there is one stock that stands out and makes me cringe every time.

It is Netflix. (NFLX on your radio dial.)

It is the only stock I own that I shake my head at when I review the details of my purchase. I am always left wondering, what the heck was I thinking? I can practically hear Nancy Kerrigan screaming, “Why? Why? Why?” when I check my E-trade account.

The Details:

I bought Netflix in 2022 for $184.25 per share.

As of this publishing Netflix is selling for $848.26 per share.

Today, the return on my investment stands at 360%.

I have almost never been as right about buying a stock as I was about buying Netflix when I did.

So what’s the problem?

I only bought 5 shares.

Not Ten. Not Fifty. Not 500 million.

Five.

Heck, I have twice as many fingers as I have Netflix shares.

The Kicking of Myself

I knew Netflix was a great company.

I knew the stock was at a great price after falling far from its recent highs.

This was the classic dip you always look for to buy stocks in blue chip companies.

It was like investing in Martha Stewart as she headed off to summer prison camp. She was a good bet in a down time. And an amazing bet with a potential prison-cred reboot with Snoop Dogg.

I knew that all signs pointed to Netflix being a great investment at a great time to buy.

Yet I didn’t go all in.

I barely went in at all. Not even 4 figures.

I invested just $921.25

Today that is $4,241.20.

But imagine for yourself what would happen if there was another zero behind that investment. Or two. Or a hundred billion zeros… (Insert Dr. Evil Laugh.) Consider what those scaled investments would have translated to today.

Obviously, I am grateful that I have a very handsome (almost Zoolander-like) return on my investment.

But I am disappointed with the strength of my conviction. That I didn’t bet bigger when all the signs said Go!

Key Takeaway

When you have done your homework, and you know you are right, you need to go all in. Push all your chips into the center of the table. It’s true for investments, entrepreneurship, and relationships. It’s true of all the important commitments and bets you will ever make on yourself.

*If you know someone who could benefit from this message, please share it with them.

+For more of the best life lessons I have learned check out my book, What Does Your Fortune Cookie Say? from Ripples Media.

Now is the time to be bold.

This has been an interesting 2 weeks for our planet. Like the movie Parasite, the coronavirus has come out of nowhere, and messed up plans from Wuhan to Hollywood. As a result, the financial markets have gone totally Tom Petty. From Learning to Fly Into The Great Wide Open, to Free Falling.

In the midst of one of the strongest sustained period of economic growth in American history, suddenly we are dealing with travel restrictions, cancelled national and international events, medical supply shortages and panic at the disco.

The Stock Market

Today, the stock markets are in the toilet. And I couldn’t be more pleased.

Because if you are looking for an amazing financial opportunity, this is it. In bad times, when people are panicking, the table is set for you to dig in and take advantage. If you need a refresher course on this lesson, rent the movie The Big Short or Trading Places tonight.

Be Bold Like Barbecue Sauce

If you have a little money to work with, it is time to be bold. You have to find your chance, and take it, like Steve Winwood. Which means picking up an asset that others have dropped like a bad habit in January. It means doing your homework. Taking action. And having faith, like Tim McGraw. Because nothing is guaranteed. And you could go bust. But there is a very good chance that you will go boom boom pow.

The Mortgage Crisis

During the subprime mortgage crisis from 2007 to 2010, American banks were in major trouble. There were fears that some banks would not survive. And some didn’t. But there was an opportunity with those that did. To take advantage of the opportunity you had to buy into those stocks during the darkest days of uncertainty.

During that time I went dumpster diving, and bought stock in 4 different banks that were in the trash. I bought those stocks for as low as $2 per share. And I learned a valuable lesson from that experience. I swore that if I was ever in such a position again, I would buy far more next time. Because those banks stocks have proven to be the smartest financial investment I ever made. Aside from my decision to start my own advertising and idea agency, The Weaponry.

Key Takeaway

I am not telling you to buy stocks. Or to start your own business. I am simply reminding you that fortune favors the bold. And this is a prime time for the bold. So be bold. Make bold choices. And see what happens next.