My Worst Investments - Why These 6 Stocks Dropped

My Worst Investments - Why These 6 Stocks Dropped

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What is the worst investment. You've ever made, the. Worst. Did. You lose 100 percent I sure. Hope you didn't lose more than that the only way to have done worse. Is to, borrow money that you didn't have invest, that, and then lose, all of that. Well. As many losers as I've had and as used to losing as I am I've, still never picked a stock for the Motley Fool that went down a hundred percent but, I've. Come close and this. Time every, year once, a year I talk, about my, worst. Stocks. My biggest, losers, over the past three. Years so, if winners. Win, well. Losers, lose. And, it's important, to talk about both. So, come. With me won't you to the dark side the shadow side, the losing. Side, let's explore, and learn, today, on my, annual David's. Biggest losers, volume. Four. It's. The rule breaker investing podcast. With Motley Fool co-founder, and David Gardner. Alright, welcome back to rule breaker investing I'm. Gonna say it one final time happy new year, that's. The third podcast, in a row this month I've done I still, feel comfortable going there so we started, off the year with getting. Your kids started, investing, that was the first podcast for, rule breaker investing to. Kick-off 2019. For those who keep score at home pretty, sure I'm the only one who keeps score at home that was podcast, number, 184. For rule breaker investing so, I know some of you have actually, been with me from the beginning or gone, back and listened all the way through if you're that person give, yourself, five, gold stars for Pat's on the back buy yourself a cupcake. Today and know, that yep as of that first podcaster this year that was number 184. That we've spent this time together, for. And then the, week after it was my. Pet peeves that was last week my, pet peeves vol 3, you. Know I was thinking about it occasionally, I'll reel issen to one of my podcasts. And it makes a lot of sense for example for me to listen back last year to David's biggest losers, volume 3 just to myself how we do it how, I did it and learn, a lesson or two but when I go back and listen to my most recent podcast I do consider, that a little bit self-indulgent and I did fully listen, to, my pet peeve on three and I really just I think I probably enjoyed it more than more than you did whoever you are and I'm sorry about that I did I loved putting out my pet peeves it was so much fun and I thought of another one in the meantime that I want to convey to you right now and here, it is before, we actually get, to our material this week it's that, time of year where snow, happens. In the United States of America and there are some parts of our country no doubt yours too perhaps where, it snows more, than, other places and a pet peeve of mine with. Regard to snow is the, further north someone. Is the, more patronizing. They'll be to people's south of them when, talking about the weather so it would be quite natural here in the Washington, DC area we received 10 inches of snow over this past weekend a pretty remarkable snowfall. One of the bigger ones we've had in recent years a lot of fun I I'm always the person cheering, on more snow I root for maximum, snow days and I want, the whole world to grind to a halt whenever it starts snowing and I so I had a lot of fun but, it doesn't take long for somebody to go well of course people. Have no idea what they're doing in Washington DC when it starts snowing I, mean you know I'm from Maine the person will say er I'm from Chicago and, it's, hilarious. To me this person will say just, how inept, everybody, is in the, city that's south of me now this isn't about Maine. Or Chicago, or Washington DC, this, is really just more about northerners. Defined. As anybody north of you coming, and telling you that in your area people have no idea what to do with snow but of course this. Wise person, talking to you knows a lot has been through it all and can't. Help but look askance with maybe a little, bit of a grin and how, sad, the state of things is in this, southern, city.

And It. Makes me think since, this is I hope a pet peeve of yours too especially if you're from the south it, makes you wonder what if we reverse that what. If anytime it got hot or really sunny, those. Of us who. Are in southern, areas hung, out some around our friends in north and just talked about how they don't even know how to embrace the Sun they have no real idea. About how to enjoy, the beach or how to get, a good tan they, don't really get out of door as much what if all of us kind of patronized, our northern friends, anytime the weather flipped. The opposite, way it's just a what-if all. Right well the actual, topic this week it's easy for me to procrastinate. In the face of having and talk about my biggest, losers and just keep. Going off the rails and not tell you because I don't want to talk about my biggest losers but I do and we do that on this podcast at least once a year and it's, this podcast. And so what, we're gonna be doing is looking back over the last three years in finding the six worst. Stock, picks that I made in Motley Fool rule breakers and Motley, Fool stock advisor now, I sure hope you're a member of at least one of those services. And if not just come join us at full calm and signup for Motley Fool stock advisor that's, kind of our starter, service for, so many of our members it's our most popular it's our longest-running, and in many, ways our best performing, service so it's been around since 2002. We're now in our 17th. Year, of picking. Stocks every month month in and month out new picks and best buys now among our old picks so, I sure hope you know the service and you're already subscribed. So, the, picks that I'm going over this week are pics that I've made as my monthly, picks in those services and it's. Embarrassing for me to think how bad these stocks have been after all you are paying us money I sure hope you are if you're a member at the Motley Fool you're paying us money hoping, to make money the, good news is we do make money more often than not and we do beat the market, so that's good as but it's. Really sad to think you'd be paying us, money. For. Us to give you advice that, would, lose you a substantial. Amount. Of money and for every one of these six stock picks every, one of them has, been more than cut in half over the last three years and it's been a very good three years for the market so. Before I go into those six picks I have three primary, points I like to make upfront especially, if you're new to this podcast or new to investing when we talk about losers. So, let's go their point number one point number one this is normal. This, is. Normal. Losing, happens, all, the. Time in, fact, studies. Have shown that if you look for stocks, that beat the market, you might think that half, of the stocks on the stock market beat the average and then, the other half, you think would, lose to the average but the truth is it's, actually skewed. A minority. Of stocks actually beat, the stock market averages, they pull up the losers but, there are far more losers. To the market than winners to the market when you look at broad studies, of the, stock market so that's just interesting, on its own it's normal, to lose to the market when you pick a stock that's in a lot of ways why people favor index funds because they figure I can't, find the winners how could I possibly especially, if I'm not interested in the subject or ever studied it so why wouldn't I just buy the average, since, after all the majority, of stocks lose, to. The averages, but we're not just talking here about losing, to the averages, I'm talking about losing flat, out like losing. Money going. Down from 0% into, the negatives, like losing 20 30 40 or in the case of our six stocks this week stocks. That have all lost between 55, and 70. Percent of, their value inside. The, last three years and yet I'm here to say again this is. Normal. It's. Normal, especially. If you take the rule breaker, approach, after all is I've many times discussed, before, on this, podcast at, Fool calm and our books and press, interviews, I've talked about how we kind, of invest like venture, capitalists.

We Take risks, we. Look our CEOs, in the eye and we say I like that person I believe in him or her I believe in the product it's kind of like what they do in Silicon, Valley with startups, we, don't focus too much on the near-term results, we think much bigger and longer-term about what things can grow into what, they can become. Which, caterpillars, will become butterflies and we buy them in those, caterpillar. Larval, stages, and we hope that they become. Butterflies we hope that our flowers bloom but we're used to many, of them not just like any venture capitalist, many venture capitalists, comb, through any number of ideas, invest. In some of them lose with many of them but find some winners and the, winners win so well that, they do well overall that largely, describes, the, rule-breaker approach, to investing this is. Normal. In fact, if you don't have, a significant. Loser if you've never bought a stock that got, cut in half for, you well. On the one hand I'm going to congratulate you but on the other hand I'm gonna wonder whether, you're investing, like a rule-breaker whether you're taking the risks that you should to, really find the best stocks so even though this week we're, gonna be combing, through the laggards, and the ugly, ugly dogs, at the, same time you should know they're surrounded. By some wonderful, companies, we'll talk a little bit about that this week as well and just know that it's kind of normal to have a mix of losers, and winners. It's. Also normal in one other regard, it's normal, for the Motley Fool it's normal for me to talk about losing. And losers, I realize. We live in a world where you'll, rarely, see somebody, talk about how they blew it or lost on. CNBC. Or in the Wall Street Journal most, people are talking about their winners the ads that you see are gonna be all, about what's winning and what's working people don't really want to talk much, about their losers but from, day one when we called this company the Motley Fool I hope, it made it clear to you our, customer, or our prospective customer, that, we're very comfortable saying, hey I'm a fool I blew it I didn't do that well or it's, just natural for us to fall on the ice as, we're, ice skating, it's part of the game of learning, how to invest is being, willing to fall out there on the, ice so this is. Normal. Point number one point number two this one is particularly. For, people who are new to the stock market and this time of year tapping. Into full calm or listening to this podcast we. Probably, have, far. More new, people than, usual, because we. Make our new year's resolutions, and a lot of us think, about our health or our wealth to kick off a new year and so you might well have, tapped in and found our podcast, and you might be thinking you know here's. What the one thing I don't want to I didn't want to lose because when, most people come to the Motley Fool as new investors, the.

One Thing, they don't want to do with our first stock is lose. And they, might pick one of my stocks they'll listen to me and buy one of my stock picks and it'll go down 7%, that first week and we'll see messages, on our discussion, boards people, expressing, worry are out there on social media what do I do now I'm down 10%. Alright maybe I shouldn't have done this or what, should I do they're, reacting to, what the stocks done and the market is very volatile, the vicissitudes, of the market aren't really worth paying much attention to, from one day or week to the next but people very naturally, especially as new investors, they, really get involved, in that, up and down and in the day to day and especially, if it's down a little bit that can be very, disconcerting. So point number two is I don't want you to live in fear of losing, as, has. Often been pointed out, psychologists. Tell us that the pain of loss is three. Times the, joy of gain, I'll say that again the pain of loss for human beings is three. Times the joy of gain. And. Yet. What's, amazing about the stock market is the worst you can ever do and I've still never done this is go down a hundred percent the best you can do is kind. Of unlimited we have stocks that have made more, than hundred times their value and, they're still going. Up so what's amazing about this psychologically. Is even though, psychologists. Tell us that as a species, we. Fear, lost three, times more than we enjoy. Gained. The. Stock market directly, reverses. That the pain of loss is. Tiny. Compared. To the joy of gained the gains that are earned over. Longer periods of, time are infinitely. More satisfying, numerically. Then. The, losses, that we suffer, so again even, though we're just going to focus on the losers this week please know that you shouldn't live in fear of those losers you should expect them they're a normal part of life outside, investing. And yes they're, also a normal part of investing. And finally. Point number three, and I'll, mention a few of these but, over these three years we've had some tremendous winners. There's not actually a single podcast, that I do every. Year that, talks about my. Biggest winners, I mean, I love to thread, discussion of what works about investing, in a lot of our podcasts, on an annual basis that's a big part of rule breaker investing but, truly I never, once focus, on just, what were the biggest winners and what, can we learn from those because I think it's more fun just to look at the biggest losers I think we all enjoy a good explosion, in the cinema and it's more fun to do the BAM, Kapow, whack moments. For. This podcast with our losers but it's worth remembering that these losers, are surrounded, by much more impressive winners. Alright, with that said let's. Get started alright, I've got six to go through and for, each of these I'm going, to have a single, lesson that I think we can learn from each of these companies I'm going to move through these fairly, quickly because I don't want to get, too preoccupied, on, the individual, stories and, the implosions. But I think there is something instructive, to learn from each of these and so I'm gonna try to tease that out let's start off with number one and number one is. Appropriately. Enough the single, worst stock, pic that I have made personally, in the, last three years it, was on June 28th, of, 2017. It, was in The Motley Fool rule, breakers, service, and the company is trivago. That's. Right that meta search engine for travel, bookings, finding, the best hotel it's a, global, company and trivago. I picked at 20 dollars and 95 cents on that, fateful day in June and I'm sorry to say that these days as I tape this podcast, on the, afternoon of Tuesday January. 15th, trivago has gone from 20.9. Five, down. To six dollars and 22. Cents yep that's down. 70%. So. What is a reflection. Or thought that I have about trivago other than I should mention that a year ago this. One was also on, the list in fact a year ago trivago was my fourth, biggest loser of the previous three.

Years So yes these recur, sometimes, from one year to the next when they do very poorly and then don't bounce back which has been the case for. Trivago. So. What is one lesson we can take away well trivago, is these, days the. Market cap is about two billion dollars so it remains a fairly, substantial company. This is not one of those companies. That has been so crushed, that it's like a little tin, can that's been flattened, into a micro, cap of a stock we'll be having one of those coming up, shortly, now this is still a fairly well-known fairly, substantial, company, but. The problem, that trivago, has faced is that a lot of its business, was coming from two, primary. Sources. Paid. Kind of search listings, and making money from the, big players the, two largest, travel, portals. Were. More than half of trivago, x' business, when, we picked the stock when I picked the stock a couple, of years ago Expedia. Which, is a part owner of, trivago. And Priceline. And a. Natural. Vulnerability, for a business like this again since, it's down 70%, you, can imagine that this was over. Five billion dollars, as a company, when I first picked the stock now it's down to just 2.2. Billion but, the company, began to suffer from these, two big dogs starting, to say you know we're, not actually gonna pay you with the same rate because. We're such a substantial. Volume player, for you both, Expedia, and Priceline started. To undercut. Themselves, and pay lower and lower rates for search, successes. On trivago, and that, really hurt the company and continues, to have hurt the company so I think a lesson here, some of my lessons are about the stocks themselves and about how we invest in those stocks but this is actually about the business and the business considerations. So lesson number one recognize. The, vulnerabilities. Of your, companies now it is something that we recognize this wasn't a surprise, to us that trivago was very dependent on these two players and at one earlier stage of our corporate history at the Motley Fool we were very dependent on just, a few big discount, brokers that back, when the Motley Fool is free in fool.com was, a free. Site ad-supported. It really. Really hurt I remember back in the day when a few of those discount, brokers that we were sending lots of customers to said in the, horrible year of 2001, as the Nasdaq, lost over, 60% of its value they said we're. Not actually gonna advertise it in your site because nobody's clicking any ads and we don't have money to advertise on your site that hurt, us a lot we we. Were a company that was highly, dependent, on a few sources of. Revenue. And that's, kind of trivago even though it's a much bigger company than the Motley Fool so, it's just something to be thinking about and conscious, of when, you're investing, in stocks and it isn't to say it never, works because we picked trivago knowing, that and yet in this case those companies began to lower their rates and really, hurt this company so that's, a lesson to, learn from this 2.2, billion dollar company today, by, the way I should mention a year, ago it had dropped from 20 . 95, as I mentioned in June of 2017, and it dropped as seven dollars and 31 cents and one, year later it's, now, down to six dollars and 22, cents so the stock has actually sold off not. Dramatically, but, another 15, percent over the. Last year and it's a reminder that we don't bottom, fish much at all at the Motley Fool if you want to take a second, lesson away from this one you, won't see me re recommending. Trivago, any time soon to, Motley, Fool rule-breakers, members because, when a company, is down, and out like this I need them to prove their way back into my confidence, in them and and.

So That's kind of how I handle, companies like, trivago and yes often, they do kind of just keep sputtering, along and this stock, is actually down from where it was a year ago all. Right what's my second. Biggest loser of the last three years well it's, Camping, World Holdings. The RV, company, now, Camping, World Holdings, also, a Motley Fool rule breakers pick I picked on November, 22nd. Of 2017. Right around Thanksgiving, here. In the US 2017. And it. Was at 41 dollars and 37 cents and today it's gone from 41 down to thirteen, dollars, and, 83. Cents as I quoted doing this podcast so 41, down to 13. A drop. Of. 67%. Now, this one is not that different in some ways from trivago, it's, also still, worth more than a billion dollars it's a consumer. Brand that perhaps, you would recognize trivago. You might have used before on the internet to book something while, some of us those of us who are interested in recreational, vehicles this is the, big player Camping, World Holdings, within, the RV industry a, problem. For, this company while several set in in, 2018. One of them was, that RV prices. For, new vehicles, started. Surprising. Us and especially management. At Camping World they. Weren't able to raise prices, prices, started to come, for new RVs and not only that but it got worse for, used. RVs. And so the company, started. Decelerating. With its growth and then, even, worse accounting. Problems, started, cropping up the company announced. It had to restate, some earnings and the market began to lose some, trust especially, when, it was discovered that management, including, the CEO Marcus, lemonis the, pretty popular well-known, CEO, this company had sold a lot of stock and so a lawsuit then, popped up in 2018, people accusing, management, of knowing. That, the numbers weren't. Accurate and selling, their stock in advance. Of that or, before, the rest of us knew that and then, some, of us are left holding the bag so it was a year, of problems. For the core business and then a lack of trust, and lack of performance. On the part of management. Now what, is it lesson to take away from this one where I'm gonna have a little fun with this but, I'm gonna say beware. CEO. TV. Stars because. Marcus lemonis is the star of CNBC's. Show the profit which is a show about saving. Small businesses. He's, the authority he's, the driving personality, he's a charismatic person. And somebody in our initial write up when we recommended, Camping World Holdings we were saying we, like Marcus, lemonis and you can watch him on CNBC. But, maybe in retrospect I should have thought about Nick, Woodman, the CEO, and founder of GoPro, who, also had become a TV star a few years ago on shark, tank and. GoPro. Which. Will not be featured on this year's, David's. Biggest losers, was in fact featured, last, year and I believe the year before because. GoPro. Was a horrible. Stock pick I picked it at about $80. A share it, touched down somewhere around nine and these, days it's even a little bit lower than that so, GoPro. Nick. Woodman shark, tank. Camping. World Holdings Marcus. Lemonis the.

Profit, I have. A queasy, and bad feeling, now when, my CEOs, end up spending a lot of time on TV if Elon, Musk starts. To launch a reality, business TV show or. If Reed Hastings decides. A feature himself on a new Netflix, streaming series. If. These things are anything like it happens drop, me a note, remind. Me that I'm making this point to you that I think we should be a little leery of CEOs, who. Are going on and spending a lot of time on television. Because now it's, happened a couple of times these are some, of David's, biggest losers. All. Right before we get to losers number three and four I feel like I want to bring back a few of the inspirational, quotes I had in this podcast a year ago I was, quoting football coaches, talking about winning and some good quotes about winning, so amidst all this losing I'm thinking, of Lou Holtz, the longtime. Successful, college football coach who, said this, I quote winners, embrace, hard. Work, they love the, discipline, of it the, trade-off they're, making to win losers. On the other hand see, it as punishment, and that's. The. Difference, end quote said, Lou. Holtz, and so, I feel like you and I are kind of winning right now because we're embracing, the hard work of combing. Through losers, we're. Loving the discipline, of that and it's, not easy to talk about losing but losers on the other hand just, see this kind of stuff as punishment they don't want to talk about it they want to sweep it onto the cup carpet, or ignore it so inspirational. Lou Holtz quote let's keep moving all. Right, my. Biggest loser over the last three years number, three. And this, one I have. To say the ticker symbol is, fairly. Ironic. Because the ticker symbol is, I Q. And you'd think if I, had a higher IQ I never, would have picked IQ, when, I did but thereby hangs a tail let's talk a little bit about IgE. Which is sometimes. Called the quotes, Netflix. Of China, probably, a phrase that we used in our, buy report, that, we put out June, of this past year that's right my biggest loser number three I only. Picked about seven months ago the stock was at $40. And 51, cents and IQ, now has touched down from 40 and a half down to 16, and three quarters and that is down. 59%. Since, June 14th, just. This past year now. Of all six. Of these companies. IgE. IQ. Is the, largest. Still. Standing, this company still has a market, cap of twelve billion, dollars and in. Many ways it's a successful, and impressive. Company it's had a poor stock market run in the last seven months but. Then again so is all of China Chinese, markets, I think we're down around 25% for. The year of 2018. I mean we had a little bit, of a disappointing. Year in the, US we were down single, digits, China, was down lost, a quarter, of its value for its stock market in 2018. So it's not surprising the more volatile, higher-priced. Kinds, of companies, with higher multiples, like IgE, would, get especially badly. Hurt and indeed it had so. What's the lesson that I have for you for number, three here well I'm, gonna say this adding, two winners works, more, often than, you think, I said. Thereby hangs a tale let, me now just briefly tell the tale I'm referring, to because, when I picked I Chi, E in June, of 2018. I'd. Actually, picked it two months before that the. June 2018. Was a rear, eka mendacious, of IgE. I first picked in an April, of last year, at 18. So. It had risen from, 18, to 40, in just, two. Months and, it's. There, from that position at 40 and a half down to 16, and three quarters that we find ourselves today, but. The truth is from the very first position I picked, it at 18 and today it's right around 17. So, it is down but. Not that badly so what I did if you heard me right there is the stock more than doubled, in just two, months and I rear ekam ended it again, and while, now I look back with some regret I'm here, to say that that strategy is, something, that I regularly do, and I'm not dissuaded. By this example from doing it again in, fact let, me just look at Motley Fool stock advisor over. The last three years right now I'm gonna give you four companies Texas Roadhouse Illumina. Match. Group and octa. All four, of those companies Texas, Roadhouse, Illumina. Match group and octa, all four, were, rear ekam ended within the last three years and each of those four respectively, is up 95%. 99%. 193. % thank you match group and. 68%. And those, are all bigger, winners, for the most part than any of the losers that I'm telling you about today, so. The very strategy, by which I Chi E appears, as my third biggest loser, of the last three years which in fact it has been from that June position, that.

Very Strategy, has also led, to many of my biggest. Winners, and I haven't even talked about Shopify, which I'll mention a little bit later this, podcast, but those are just four companies from stock advisor alum, so. Lesson. Number three, ironic. In the face of a dog stock pick which is what. Heh. Respect in June of last year, ironically. The lesson here is adding, two winners works. More. Often than, you think and I don't think we should be dissuaded by a result like this to think we shouldn't do that I'm gonna keep doing it even when it sometimes, hurts. Alright. My biggest loser number, four the, company name is impinge. IM p i n, j. Impinge. The ticker symbol is, p i I, first, picked impinge for Motley Fool rule breakers, on December. 21st, of, 2016. A few. Days before Christmas not. A very good stock to put under the tree that, particular, year because at the time it was at 38, dollars and 33 cents and today it's, down at $16. A share it's down. 58%. So. What is a reflection, that I have about impinge, well this is a company that has. Developed a platform for. RFID. Technology. Those RFID. Chips, that you put you see those tags put, on well everything from packages. To devices to keep track inventory management. Tracking. Where things are going or maybe at your corporation you have little these, little tags placed on underneath. The chairs so we can figure out where all the chairs are in the conference rooms there are multitudinous. Ways of using this technology and this company has built out a platform, to help you as a night she managed to kind of manage, all of your, assets, but, this company now having lost 58 percent of its value in the last two-plus years is down, to just a market cap of only about 340. Million dollars so lesson. Number four. Is. When. You have a company, get crushed, down to. Be that small, I would, typically, suggest that, you refuse. To add to those positions ignore. Crushed. Micro. Caps not, only is this a stock pick of mine and Motley Fool rule breakers but I also personally, bought it for, one of my children's, accounts and so, I've taken this on the chin just as much as anybody else and I'm not looking, to add, to that position, now the reason I'm saying that in highlighting this is because a lot of people when they see a stock go from thirty-eight down to sixteen they start, thinking why I liked it at 38 and you know 16 heck if it just doubles, back to 32, it's still below my cost but it would be a double from. Here and so sometimes people get excited, when, companies lose, this much value and they start thinking this, isn't a penny stock but this is really prevalent in penny stock thinking they start thinking yeah wouldn't, take a lot to double from here maybe I should buy some more.

And While, that can be true and we have had some all star performers, bounce back in fact two years ago when I did David's, biggest losers volume, 2 I highlighted. Rh, also, known as a Restoration, Hardware the. Stock had dropped from 93. Down to 30 which was a huge, loser two years ago within. The following year it bounced, back from 30, to 95. Today I'm happy to say it's at a hundred twenty seven and a half up, four. Times from when I did David's, biggest losers, volume to two. Years ago this month so. It is possible, that. Some of these companies especially ones that are more substantial companies. With with maybe a brand that people recognize, they, probably have a better bounce back opportunities. Than some of the others I'll give another quick example a, year ago on this, podcast, David's. Biggest losers, volume, 3 Under. Armor was on the list Under Armour had dropped from, 39, down to 14, well over. The last year it's up 29%. From where it was a year ago so some. Of these bounced back in my experience it's probably, the bigger more branded. Companies that do that not the impinges. Of the world now I still hold my impinge, shares, it's, still a part of our active rule-breakers service I sure hope it, comes back but I would typically lesson, number four ignore, these, crushed companies that get down to micro-cap, Ville now. I do want to point out one other quick thing about impinge. Before we go to number five and that. Is that this company has, had decelerating. Sales growth so, when we first picked it back in middle of 2016. Sales, were growing about 50%. Year-over-year like, from the previous, year's quarter to that quarter it was up 50% then. The following quarter through the end of 2016. That, dropped a 49 percent year-over-year, then, the following quarter throughout 2017. And went forty-seven, percent then. The next, one was thirty one percent growth then the next one was five. Percent. Growth and, then, six quarters or so after I'd first recommended, it sales. Actually, decelerated. To the negative, down, twenty percent from that quarter, a year ago. So, especially, when you see sales growth decelerating. And going negative, for. Smaller cap companies that, is a really, bad sign of course not something I was expecting at all very, disappointing, makes, me wonder about the RFID technology. Period. And we probably need to reassess, this but anyway that's where impinge, is my fourth, biggest. Loser, with, a couple of thoughts you can take away about impinge, to summarize. Again ignore. These crushed companies, once they get to be so small and to. Plummeting. Sales, especially. Bad, sign an especially, bad sign for small companies all. Right before our final two how about another inspirational. Football, coach quote yep I feel it coming on Tony Dungy the very talented and NFL coach who these days football, fans will know is an, analyst, on television, analyzing. The game but Tony Dungy once said quote I, just. Think winners win and, guys. Who won all the way through high school and college the. Best player at every level they have a way of making things happen and winning. Games, period, end quote now one, of my secondary, themes, for this podcast throughout, 2018. Was. What tongue-in-cheek at times the phrase winners. Win and now I realize I first, brought this quote out to you a year ago in this podcast I think that influenced. Me I'm now looking backwards, and realized he was Tony Dungy who, got me on the whole winners, win tracks so, thank you Tony and I, agree with you and that's that's, why it's a good reminder after we talk about a company like impinge, which frankly. Has been losing. So. Often, the. Momentum, of winning and losing, continues. Longer, than most people think. Often. Things win for good reasons, underlying, reasons, that continue, to, happen for example if somebody's just a great athlete and that, person, has a great experience and keeps winning, they. Feel inspired by their fans to keep working hard, they. Know how to win because they've won before so that helps them win more in future factors. Start to show up to, propel, winners, into, more and more winning positions, similarly.

For, These losers, that we're talking about in this podcast there, may well be factors, in play that caused, things to make it harder, for them to, turn that losing around and to. Win so just, a thought thank you Tony Dungy okay biggest. Loser number five and of all the companies on this list I think this is probably the best-known the. Company's market cap today is about a billion dollars and a half I first. Picked it on May 25th, of 2016, at 14 dollars and six cents the. Stock is down to six today from 14 to 6 the company is Fitbit, the. Ticker symbol is, fi, t and yep this stock did appear on my, last year's list again. I keep these lists, for the preceding. Three years so if a company has a really bad first year, it'll, come back for, a couple of years on this annual. Losers. Podcast, that I do but a fourth. Year it won't show up it'll drop off the list because I'm only looking backwards, three. Years so I will point out when I presented, Fitbit. A year ago is down to five dollars and 67 cents, so it's actually up to six now it's up a little bit after a down year for the stock market what's. A good lesson about Fitbit, well, I know, a lot of people wear a Fitbit, they appreciate, how it helps them track their steps in some cases perhaps their sleep other, aspects, of their health more attendant, to health data. Is, definitely. One of the micro, trends, worth paying attention to him when I had mark pen on this, podcast doing, micro, trends, in my, office in August series, last August, we talked in part about self. Data lovers, a micro Chen you and me keeping track of our steps and a lot of other things through our iPhone, these. Days so it Fitbit, very much fits within that micro, trend but I think I think the lesson here is, that hardware, is hard, especially. When you're competing with Apple, but so much of the world is moving, toward, becoming software. And a, lot of the devices that we used to carry around for example like a watch, or, a GPS. Or. How about a camera, that's a much better example and, my talented, producer, Rick Engdahl who's a wonderful photographer. Quickly. Furnished me that that idea but there are a lot of other examples of, hardware. That, an iPhone these days has replaced, and frankly. Fitbit, could be added, to that list. Fitbit. Is not the only company operating, in the space it just happens to have been the leader before, Apple, with its Apple watch showed. Up so hardware. Can be a hard business I've, always appreciated that Fitbit has a lot of data and I've always hoped that, that would be a good reason to own the stock because if you've used, it Fitbit then there's a lot of data that Fitbit, has and it can it, can get you data insights, about your own data it can also aggregate, populations. Of data and create lots of value I had hoped turns. Out I wasn't, very right at least so far about Fitbit but competing against Apple, is a big reason I think that Fitbit, has been such an underperformer, I also want to point out two other quick, points about this stock itself, the. First is that this stock went down fast, and hard and that can happen especially with, small cap companies so, in October of 2016. Fitbit, was at $16. A share it, looked, like it had been a good stock picking and we'd picked it in may have gone from 14 up to 16, just half a year later and then from.

October, 2016. Four. Months later January, 2017. It went from 16, to 6. Ouch. It. Lost more than half its value in just four months that. Micro. Lesson number one just about the stock these small caps can go down hard and fast. Lesson. Number two sometimes, it takes him a long time to come back so now two years, later I just, mentioned that was January of 2017. It was at six guess, where it is here in January 2019. That's, right I already said it it's at six, for. Two years now in a very tight band Fitbit, has just kind of bounced, around five. Six five six five six five six it's, been, kind of dead money in a very good two years for the stock market albeit a very poor fourth quarter of 2018. And kind of a ho-hum your overall. 2018. But Fitbit, just kind of has sat there and done very. Little, so, that excitement, that you might have as a well-known coming like Fitbit has a stock drop, into the single digits, it, hasn't been rewarded, that excitement has only consistently. Been disappointed, by a company that's kind of having a hard time pulling itself up out of, the morass of underperformance. So again. I hope. For good things for Fitbit maybe it'll be one of those bounce-back, companies we talked about a year or two from now but. That's not usually where I put my new money I don't like to throw as the, old saw goes good money after bad so there's a thought a few, thoughts from, Fitbit and finally, stock. Number six my sixth, biggest loser of the last three years and yep we've actually already, talked, about this one because this is one of those that I recommended, and Ari. Recommended, and it is Camping, World Holdings. The, sixth worst performance, comes, from I pick on December, 21st. 2016. Discerning. Listeners, will note that, two, of the 6 worst picks I've made in the last three years were from the same issue of Motley Fool rule breakers December, 21st, 2016. Impinge, and this. Selection of Camping, World Holdings, now I already, covered Camping World earlier. And this, is another case where I picked, it in December. 2016. It went up some, I initially, picked it at 30 it went, up I then added some a, year, later at 41. In November of 2017, but since the stock has since come down from 41 down to 13, both positions. The one initiated, at 30 and. Initiate, hire at 41, are, badly. In, the, red and this one is down, 55%. My sixth, worst, loser, what, we've already talked about Camping, World Holdings, but in a maybe. Kind of a lovely and sadly, ironic way. Drawing. A lesson from this last one actually brings together almost all the other lessons, I've shared with you this. Week yup, beware, CEOs, who are TV show stars that's, true of this sixth position as well Marcus lemonis talked about that earlier companies. With accounting, problems, yep that's also, been true of that was true of impinge it had some problems I mentioned Camping, World had some accounting problems in the last year as well, adding. Two winners works, a lot here. I added to a winner it's done horribly, but, I mentioned earlier all of the wonderful winners, we have added to that afar out perform. This and I should mention right now Shopify. Shopify. Is my number, one winner, that I've added to in the last three years the, winner that I added to is up four hundred sixty, nine percent on its own Shopify. Within. The last three years yep it went, from a lower position to a higher one then I rear-ended it there and that is up four hundred sixty nine percent, so adding two winners works more often than you think, and finally. Yep camping, world is kind of a hardware coming hardware is hard. Are these big, heavy. Vehicles, to. Build. To. Sell and to, maintain, so maybe even in sort of an elegant way this. Final, pick brings together many, of the things we've talked about this week on David's biggest losers, volume. Four. All. Right well there, you have it thank you for slogging, through the utter mediocrity, and. Disappointment, with me over the time that we've had together this. Week I never really, enjoy doing this but I still try to make the best of it and I'm gonna add in one more inspirational. Quote from a football coach as well too close before I talk about what we're gonna do next week and this quote comes from with the former Washington, Redskins great head. Coach Joe. Gibbs who. Won at least one Super Bowl I think was a couple of Super Bowls for the washing Redskins, back in the day but, here's what Joe Gibbs the Redskins coach of your said, he said quote failures.

Are Expect. Did bye losers. Ignored. By. Winners, end quote, and. While. In some ways that contradicts, what I said earlier cuz I've said you should expect, failures, that's part of investing, losing, is part. Of investing, but the really key part is what he said, secondarily. In that quote failures. Are expected, by losers ignored. By, winners, and I've tried to emphasize that a few times this podcast, and indeed other, podcasts. In the past I try. To learn as many lessons, as I can not from my losers, but. From my winners, so I've had occasion to mention Shopify. And a few others earlier this podcast, and of course many other podcasts. In 2018, we talked about what works and I think it's by observing, the things that work in life not just an investing but in life that, we truly, can learn our greatest. Lessons so it might sound irresponsible. To simply ignore. Failure. To look past it but once you understand, the, math of investing. And that winning, a good, winner can, wipe out all of your, losers forget, about that three times the joy of gain, pain, quotient. Nope, failures, are expected, by losers Joe Gibbs set ignored. By. Winners so food, for thought all, right speaking of picking stocks that's what we're gonna be doing next week because every ten weeks on the show it's our five stock sampler I picked five stocks from our services put, them right out there in front of you and say I think they're gonna beat the market going forward so, I'm gonna introduce my first, five stock sampler, for you my, noble rule, breaker investing listeners, next. Week in the meantime one. Final, quote this one's from Vince Lombardi, Food for Thought for you in the week ahead winners, never. Quit and quitters never. Win. As. Always people on this program may have interests in the stocks they talk about and The, Motley Fool may have formal recommendations for. Or against, so don't buy or sell stocks based, solely on what you hear, learn. More about row breaker investing at, RBI, cool, calm. You.

2019-01-24 16:00

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Comments:

Yes Amen

For fucks sake, get to the point!!

And yet again a great reminder that Fooling works despite some very „suboptimal“ picks. In the long run the returns prove the system right. Thank you for this honest an reflective video. Thumbs up! Fool on!

You waffle too much nonsense to continue to watch past 10 minutes, just get on with it

Best episode ever!

HMNY bad day trade for me. lost 2K

Skip to 14:01

You're awesome. Thanks! You saved 14 minutes off my life

Michael Pollini haha no worries I’m glad

never invest in camping world. he's very bad so many complaints about his company very bad company.

sparsparkster

Thank you

useful if you could share what made you choose those shares in the first place (the analysis and thought process) and the mistakes that could be avoided in retrospect. Thanks!

I’d love it if motley fool would stop with their obnoxious click bait ads everywhere

I REALLY, REALLY wish that when I want to look again at the 10 favorites, I didn't have to log in. Lots of sites with information more critical to keep private just say things like, " I see you're calling from a trusted computer device", or something like that, & let me continue as if they know me personally. If I didn't like Motley Fool, I'd be pretty miffed. It's a testament to your sincere kindness & abilities, I think, that some of us continue to support subscribe.

I liked this, and sometimes I just listen because you seem genuine & well-meaning, but I really don't like the way my Fool widget works AT ALL. It may be that I wasn't charged for another month, but I'd just like to suggest that you take a look at how the Money Map Press widget works. I can go to a portfolio ( Michael Robinson), or recommendations section ( Bill Patalon), or to the very important UPDATES ( which I sometimes forget to read, leaving me with several stocks I should have sold), or I can go to articles. With my Fool icon, I LOVE the articles, but for pretty much everything else, I get, " Hmmm.....something seems to have gone wrong on our side." You're so polite, and I really do like that, but for people who don't get all their mail on their smart phone, don't have good memories, don't like to wait for the pc to boot up to check their records to see what's going on, or have a roommate/ husband who hogs it, it would really be better if you just went ahead & said, " Hmmm, it seems that your subscription may have expired." My husband is grading papers on the pc, so I guess I could call the bank before renewing, but I don't, usually; I just let it go, & then feel like I missed out ( & yes, pretty stupid)when something keeps going up, like SHOP, which I first hesitated to buy. Of course, if I paid for a year, maybe nothing would go wrong, but I'm not even sure of that, as it says, " Hmmm, something seems to have gone wrong on OUR side". ( But don't think for a second that I prefer another service over yours).

Thanks for your candid revealations of your losers. I wonder if those losers didn't have any hidden flaws that might have been overlooked. Thanks again.

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