Coincidentally, I was considering going long with SBUX on Tuesday when the market opens. It presents itself with wonderful opportunities, especially for a growth investor like me. Earnings are expected to grow by more than 15-20% annually, and it is expanding its market into Asia, just as my best-performing stock - Philip Morris (PM) - has also successfully done.
However, that's not what I wanted to talk to everybody about today. This article will focus on the biggest mistakes I have yet made in my investing career. And they go by the names of Nordstrom (JWN) and Family Dollar (FDO).
When I first bought bought JWN in November, I suddenly realized that it would be a major problem. Unfortunately, I decided to invest $480 into the stock, a decision I have so far regretted. I don't think I have ever seen this stock in the green since I bought it a few months ago. This used to be my worst-performing stock, often hovering around 2-5% below my purchasing price, until FDO suddenly collapsed later last week. The stock plummeted more than 6% in a matter of minutes due to poor earnings results, as far as I understand. Since the catastrophe, the stock has simply gotten even worse, yet I do expect a rebound over the course of the next few months.
I do remain pessimistic about both of these stocks, especially Nordstrom, but I do not planning on selling either according to Warren Buffett's principle, to be fearful when others are greedy and greedy when others are fearful - but I don't plan on buying anymore of these horrible stocks either!
So, what stocks do you think will fare well in 2012? Will Starbucks (SBUX) outperform or underperform the market? Leave a comment below and share your opinion!
Until next time,
Alexander
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