Stock Quarantine

Stock Quarantine

Morning folks,

“It’s not what you don’t know that kills you, it’s what you know for sure that just ain’t so”
— Mark Twain

Stock analysts love to get it right. It’s not just a point of pride to look back on a recommendation and see it up multiple-fold, it’s a reminder that you may have helped someone significantly increase their family’s wealth. It feels great.

But, of course, we don’t always get it right. We make mistakes. I’m delighted that here at MyWallSt, we embrace making mistakes. It’s something that is bound to happen anyway and so it should always be a learning opportunity, not something to be feared or something that will bring about some form of punishment.

We also like to talk about our mistakes. Every stock that has ever been added to MyWallSt is still in it (unless it was acquired), along with the price at which it was added. We’ll never delete a stock because it didn’t work out. We’ll never try to boost our performance stats by omitting losers. Instead, we write down what we saw in the company at the time we added it, we explain what has happened since, and we try to pinpoint what went wrong so we can avoid similar mistakes in the future. It’s a very important part of the culture of this business.

Many readers will have already noticed that certain stocks have write-ups that demonstrate this. However, today, we are launching a new feature to ensure that users are fully aware that some investments have just not worked out and the investing team does not believe that they remain good opportunities at this time.

Certain stocks that fit this description will now be marked with a “Quarantine” tag and will appear at the bottom of the “Our Stocks” section. I promise you, the name was decided long before the current outbreak, but it happens to be the most appropriate one we can think of at the moment. 

To be clear, this is not a “Sell” recommendation. Depending on when an investor entered a position, even a stock marked as Quarantine may still be a good investment. However, for those who do not have a position, the Quarantine tag is there to make clear that we would not suggest opening one at this time.

The stocks marked will still appear in MyWallSt and their performance will still be reflected in our performance stats.

Finally, we plan to do this very sparingly. We have chosen four companies that have already been added. We would like to think that further additions will be very infrequent. If there are fundamental changes in any of the businesses marked, we will consider removing the tag and explain, in detail, our reasons for doing so.

Those four are:

  • GoPro

  • TrueCar

  • Nautilus

  • Duluth Trading Company

If you have any questions, please don’t hesitate to contact Luke. He knows much more about this stuff than me anyways.

RoryRory

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