Wha Wha Wha (Year 5 review)
Over the last year I have made my biggest mistake in investing and also my largest loss of capital in regards to holding RIMM. While I kept thinking that they would turnaround and things would get better delay after delay finally made me cave in and give up for greener pastures. The straw that broke the camel’s back was delaying Playbook 2.0 where they would not meet the goal of having it ready before the holiday season. Nothing has really changed since them with the delay of BB10 so although it was a hard kick in the nuts it was better to cut and run then. If I had continued to hold I would be sitting here complaining not running when my thesis changed.
Overall my portfolio is composed of 3 stocks. With such a large concentration in a few stocks success or failure depends on how those companies operate for better or worse. While I do not expect these companies to shock in awe for the most part over night with regards to AIG and BAC I expect them to continue to fix their issues and then one day catch everyone by surprise. I have both the common and warrant with these two companies and expect to have them as a core part of my portfolio 7 years from now. Plan to eventually sell off the warrants and keep the common but I still have at least 6 years on the warrants so its not a pressing issue.
The next step will be in regards to the FDA decision to Neoprobe sometime around Sept 10th. It’s been a very profitable venture so far since I first started purchasing in 2009. Looking forward to see if the baby grows up on the 10th. Currently only hold 1/3rd of my original position since other opportunities came up. If there is a favorable response would like to move some of the money into a coal company and maybe buy some more AIG and BAC.
I don’t see how the government gets out of the current financial mess without inflation. I’ve never invested in a period of high inflation that I feel will eventually come. Since everything gets hammered with inflation still trying to come up with a strategy so that I am prepared if blue chips want to start selling at a PE of 7.
BAC (common and warrants)
AIG (common and warrants)