I'd like to share with you my biggest investing mistake. I hope you can avoid making the same mistake I did years ago.
My journey into stocks didn’t start well. In 1999-2000 I got caught up in the technology stock market bubble. I bought Nortel at $85 and then again at $65. Nortel then dropped to $10, $5, and eventually went bankrupt. It proved to be an expensive lesson to learn. $2,000 in losses made me re-think my approach.
I decided to seek out successful investors, learn what they did, and copy their strategy. Benjamin Graham, David Dodd advocated value investing. Geraldine Weiss, Tom Connolly advocated dividend investing. My approach is what I now call “Simply Investing” it combines the best of value investing and dividend investing.
I learned not to blindly follow the advice of friends and colleagues. People may mean well but you need to do your own research and educate yourself on how and when to invest. I created the 12 Rules of Simply Investing to make sure that I never make that same mistake again.
There's no need to re-invent the wheel, focus on buying quality stocks when they are undervalued.
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