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Re: wow_happens28 post# 320

Sunday, 07/31/2022 5:48:27 PM

Sunday, July 31, 2022 5:48:27 PM

Post# of 398
>> REED <<


What a disaster that turned out to be. I first noticed them back ~ 2012 when they were having a great year. Being into biotech stocks, I figured that a beverage company like REED just had to be a lot less risky. Wrong.

I followed REED closely (I thought), listened to every conference call, etc, but now realize that I just don't have the ability to accurately analyze individual stocks. Seems obvious now, but I had to learn the hard way. Listening to a Buffett or Peter Lynch gives a sense of what is required, and very few of us have that ability.

What I do now, in addition to the $1000 limit, is mainly to look at the 10 and 20 year chart (has to be a nice steady upward slope). Imo, this is the single best screening tool for a long term buy/hold investment, since it efficiently summarizes everything - the steadiness of the business, quality of management, profitability, etc. And most of these companies also have a decent dividend.

Ah, but the lure of finding a tiny company and getting a 10 bagger, 20 bagger. I figure with a $1000 limit it's still possible to get a big return over time. Winmark (WINA) is the only microcap I've found that has the 10 year chart requirement, and it's been a 20 bagger, though it took 20 years to do it.




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