Good afternoon and welcome to my annual pilgrimage into my Sharesight account, to find you 3 embarrassing errors I made as an investor in 2020. The super short audio clip below covers my investments PKS Holdings, Connextion Telematics, and Marley Spoon.
You can listen to my reflections on these mistakes in the audio clip below, and I’ve put the exact details below for your reference.
First up, I cover PKS Holdings (ASX: PKS). Now, this one is the most embarrassing because my friend actually covered the stock in detail (after I had sold).
According to Sharesight, my overall loss with this stock is ~26.4%. However, my recollection of a 50% loss is not far off. When I drill into the details, my highest purchase was at 19c per share in November 2019, while my lowest sell was at 10.5 cents per share in March 2020.
I may have been a bit harsh on myself in my reflections though given the company is now trading at 32c per share, whoever bought my shares in March is sitting on a ~200% gain in less than a year, so I was definitely the patsy at the poker table.
The second stock I cover is Connexion Telematics (ASX: CXZ). As I mention in my audio message, above, I bought the stock with the intention of doing more research, just as the pandemic began to impact markets towards the end of February 2020. Then, I sold the stock on March 30, 2020, for around 1c per share for a fast loss of -54% in less than a month, missing the absolute bottom by just a whisker. Ouch
The third stock I cover above is Marley Spoon (ASX: MMM), which I sold for a mild profit on 23 March for just 43c per share, at pretty much the bottom of the market. I then watched as the share price went on to gain over 700% to peak above $3.50. It still trades at almost 10x my original purchase price of 27.5c.
Finally, I’d like to chuck in yet another embarrassing trade that I did not mention in the podcast. I have uncovered this trade with the help of sharesight.
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My final bonus embarrassing trade for 2020 is Audinate Group (ASX: AD8). While I still hold some Audinate shares, this stock was the single biggest loss (in absolute dollars) for me this year. Previously, I had paid up to $7.40 for shares. However, I thought it would be badly impacted by the pandemic and sold many shares at prices well below $6.
Particularly baffling was my decision to sell some shares at $3.69, as it rebounded off the lows at the end of March. In this case, I think my biggest mistake was that I did not realise how quickly investors would pile back into small-cap growth stocks. I had already held past the bottom and most of my sales had been at more reasonable prices.
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