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In the late 90’s when the world was ablaze with dotcom millionaires and it looked as though the stock market could make me wealthy too, I bought a lot of technology stocks — including some start-ups and IPOs (Linux, Red Hat, Pilgrim Technology Fund, EMC and others that I have since become an amnesiac for, thankfully). I rode them all up on a wild ride, and then rode them all down again. When I was tracking finances, I was riding a roller coaster
The actual dollar cost I lost wasn’t too traumatizing, but not selling when the P/E ratios were in the stratosphere was a big mistake that has cost me in the neighborhood of $100,000. To add insult to injury, during this time I came across a beach area lot that I bought, because of its terrific price… but of course, the proceeds I used were from selling my highest-quality investments, and I was left with the speculative garbage or what remained of them. Sell the losers and the low-quality first, and keep the long term winners.
Train Wreck Tuesdays are a weekly post of horrible financial mistakes. They are posted anonymously. Submit your story; if you’re selected, you get a free personal finance book. The best comment gets the same prize! Check out past Train Wreck stories.