Saturday, September 22, 2018

"An additional $560k gone..." -- Calculating the dollar losses to investments and business

When I first started this blog years ago, it was meant to chronicle my journey, to be accountable to myself for my financial decisions.

Gradually, I have people telling me they learned from my blog. That kept me motivated, until I got busier and busier, and reduced the frequency of writing drastically, to the point I have almost not written much.

And... I'm glad that I have posted more in the earlier days. It's like I'm reading on my past self, how much more disciplined and stingy and scroogy I was than now.

So this blog post serves as chronicle for my future self to read and re-read again.

Instead of a blog post with a positive tone, this would take on a more negative tone.

More stock losses (~$29k)
I like to talk more about my losses in stocks, than gains. For me, it serves as a reminder of my stupidity, lapse of discipline, and how much more I have to think and learn. For others, it serves as a warning that the stock market is not here to feed you or give in to you, but a double edged sword that can slit your throat any moment.

Losing at Noble Group
After my past estimation that the estimated capital gain was near $0, more losses were chalked up. First, Noble. That was an additional ~$8k in losses. I have to admit, it was more of a gamble to buy. I cannot remember the price I got it now, but I remember having a minor profit after buying.

Subsequently, the management decided on a 10-for-1 consolidation, before the share price drop to its pre-consolidation price. In one fell swoop, this caused the share price to drop 90%. Failed gamble. Entirely my fault. I thought I did my homework, but obviously I do not know enough.