When you’re barely out of the sophomore gates of investing you will make some rookie mistakes. After selling some marijuana stock that I made a nice profit on I became a little loose with my money. A few guys on BNN had no negative things to say about this one stock that had dropped 30% in recent months.
Without any good reason other than listening to so-called experts in suits, I bought stock in Grande West Transportation, a bus manufacturer in Canada. From $2.15 it kept falling steadily and is now trading at $0.95.
- Be careful with listening to the ‘experts.’
- If a stock is falling for unknown reasons especially a largely unknown stock then there might be something you don’t know.
The company knew that it would not build and sell the number of buses that they said they would. Of course, people on the inside and close to the inside knew about this long before it would be made public. This was probably why the stock was falling.
It’s not a lost cause but the stock now needs to more than double for me to get back to even.
My Personal Opinion
- Don’t bother with these small caps when you don’t have a good enough understanding of the industry.
- Ask yourself before you buy a stock how you will feel if the stock goes down and you have to hold it.
- Before buying any stock would you tell your friends and family to buy it?