My Worst Investments

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My Worst Investments

We have all made some mistakes in life, but we just need to learn from them. That is the key. This post will basically be about my worst investments and some of my best. I’m also curious to hear about what your worst or best investment has been. Without further ado let’s get to it.

Worst Investments

Precious Metals

I really got into precious metals between 2013-2015. I really thought sh%t was going to hit the fan, money as we knew it was over. Governments were (and still are) riddled in debt. When I really started reading about money, I found out it used to always be backed by something. Gold for instance. This would give merit to the currency and It wouldn’t just be based on the idea that someone will accept your money, like it is now. In 1973 the USA officially ended it adherence to the gold standard.

Anyways for those 2 years, I STACKED gold and silver. Almost every week we would make the drive to the bullion dealer and buy more gold or silver. I would hear some more fear story’s about the currency and be dying to get more next week before the price increased.

It started off with silver maples, gold maples etc and slowly transitioned into bullion bars. After stacking those for awhile I transitioned to the more collector items and started getting 10 ounce collector coins. A little more premium but they looked cool and every year would bring a new style out.

Suffice it to say we hoarded a tonne of precious metals in those years. Unfortunately the metal has basically went sideways and some of my purchases have actually went down. Overall my precious metals is still down from what I paid for them. Luckily I started to buy those collector 10 ounce coins, they have definitely appreciated in value.

No Return on Investment

Its crazy to think, how much money that would of generated in just dividend’s alone. Not to mention the share appreciation since 2013. Arg. A couple months ago I sold 120 ounces of silver to help pay the remaining balance of the solar panels and the guy was telling me how much silver he has these days. People are getting sick of just sitting on precious metals with no returns.

I plan on slowly liquidating our precious metals, when we need it. I think ill keep the collector 10 oz coins to give our kids someday though. While it is a great insurance or hedge on the currencies in general, the lack of return sucks………




Stock

Now I’ll include this just because I talk about stocks. I’m a long term guy, but learned something since I started investing.

Corus Entertainment – has been my biggest loss since I started investing, currently down 46%. Basically since the start of the year. I’m not too worried though as they are a Canadian content powerhouse and basically every radio station in the gta is theirs…..

Enbridge – I love Enbridge and am not worried about them. Clearly we can see how hard it is to get new pipelines built or even changed….. My issue is I created such a massive position in Enbridge when I started investing that it currently is over 11% of my total portfolio. Rookie Mistake….. I would love to add to them at these price’s but am torn as I’d like to bring down my number one holding as a percentage of my portfolio.

Teck Resources – The stock I passed on. I remember hearing about teck when I started investing. It seemed like a really good value, but after really reading about them I saw coal was a big part of the business. I passed on them thinking coal was dead. Boy was I wrong! At the time it was trading around 4 bucks. It’s currently $31.75.

Worst Investments

Patent

When I was young me and a buddy decided to create a patent on a idea we had. It cost $1400 bucks, so $700 each. I was skeptic to actually spend the money on the idea but kept thinking of the movie – Envy with Jack Black and Ben Stiller. Jack comes up with this idea to create a spray to evaporate dog crap, he asks Ben to invest in the idea. Ben laughs and says no, but then jack does it solo and becomes really rich.

Anyways the idea was a sunscreen that went on blue but went clear when it got hot. We had one of the big sunscreen brand’s actually inquire about the idea. Unfortunately it was just a idea and we had no idea how it would work, so they passed on it. =) womp womp……

Best Investment

Its hard to sit back and think of what our best investments maybe. Schooling comes to mind or stuff with our kids but lets keep it financial.

The Total Money Makeover – I think this may be my best investment I can think of. It was like a $20 book that completely changed our lives. Ive stated it before, we had over 60k debt before reading the book and generally didn’t respect money. Pretty cool when 20 bucks maybe our best investment.

Our New House – We bought our house, a complete fixer upper. Lights didn’t even work, (wired wrong) sample paint patches on the walls, dog piss carpet, moldy bathroom, broken windows (not one opened) etc etc etc. I did most of the work myself (other than bathroom) and the house has increased in value over 300k since we bought it. From a financial standpoint this has been a amazing investment. But also from a lifestyle viewpoint, a bigger yard gets us outside more. The streets are quieter so I don’t need to worry as much when our son is riding his bike.




Stock

My best stock for total return has got to be Russel Metals. I bought it 2 years ago and it has returned 70% in share appreciation plus a yield on cost of about 9%. Unfortunately its not a huge holding of mine. I’d love to add to my position but not at its current price point.

Conclusion

Well that concludes my best and worst investments. No regrets, just learning lessons. Have you ever bought physical bullion? Do you still have it? Any stocks you wanted to buy that you convinced your self otherwise and then the stock took off? What have been your best or your worst investments?

Game 7 Tonight, GO Leafs GO

Cheers..

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15 Responses

  1. I never bought any precious metals..a few mining companies would be the closest I’ve come 🙂

    I almost bought a bunch of TECK as well around 4.00..but had the same reservations that you did and passed on it (big mistake)…but hindsight is 20/20.

    I think you will be okay with ENB long term…still a little concerned with Corus but hopefully it works out for ya!

    My best investments (% wise) would have to be my weed stocks – but I cashed them out for 200+% returns and bought some safer stocks.

    • Rob says:

      Haha thats awesome Jordan. Yeah i passed on the dope stocks. Huge money missed there, glad you profited.

      Im not worried about enbridge just sucks that my position is so large that i cant be buying!

      Go jets!

  2. Good to read through your wins and losses, Rob.

    Too bad that you are starting to sell the PMs. When you start hearing such negative and hated asset, that would be my signal to buy rather than sell. Yes, theres no cash flow with hoarding metal, but thats not what its for. PMs provide you with storage of value and purchasing power. Its about trying to find the right balance in your overall store of value vs. cash generating assets that will lead to a more comfortable living.

    All the best
    R2R

    • Rob says:

      Hey Road

      Yeah, my sale wasnt a huge % of the portfolio. Ill slowly liquidate it, im in no rush. It is great for diversification but sucks for cashflow. I hear what your saying though!
      Cheers

  3. Worse investments I have so many : Enerplus, Cominar REIT, DREAM REIT, A&W Royalties Fund,

    ERF = cost basis around $21 dollars a share and it went all the way down to around $3.00 and has gone back up to around $15.00. They cut their dividend multiple times from $0.18 monthly to $0.01 monthly.

    Cominar REIT and DREAM Office REIT have cut their distribution multiple times. DREAM Office REIT has risen in value to around $23 which is very close to my ACB. Cominar is down almost $5 from my ACB per share.

    My best has been Facebook. I bought it immediately after IPO at $38 per share. I only own 10 shares.

    RCI.B, EMA, BCE, BNS have been good. I think ENB will rebound.

    • Rob says:

      Yeah dividend cuts hurt. Thats my main thing. Stock price drops mean more drips…. potash and boardwalk reit have been my only dividend stock cuts though. Knock on wood.

      Thats awesome about facebook they just posted some nice results.

      Cheers Ip

  4. Rob, Too many misses for me to go through in a blog comment. Funny though, I was thinking of doing a post similar to this. It’s so valuable to recognize your mistakes, learn from them and move. I’m sure I/we have many more investing mistakes in our future, but I think if one minimizes them to a small fraction of all the decision made, everything turns out all right. Diversification helps……Enbridge as an example. Tom

    • Rob says:

      Hey tom

      Thats funny, i had one on my mind and someone posted the exact same thing the day before i was going to write it up.

      Mistakes will happen, its all goos if they are minor. Enbridge will bounce back but sucks i cant add atm.

      Cheers

  5. Leo T. Ly says:

    I also own a sizeable position in Enbridge and took a big hit when the news came out. With any company, some times they encounter challenges. This pipeline will thing is definitely one of them. Just hold on tight and collect the dividends.

    My best investment had been buying Berkshire Hathaway for my wife’s account. Worst investment was oilexco that went to zero.

    • Rob says:

      Yeah just means more drips… just would love to dollar cost average down and catch that monster yield.

      Berkshire would be a great one to own! Sucks about exco.

      Cheerrs leo

  6. Worst Investments : I have lots . Enerplus, Cominar REIT, Dream Office REIT, High Liner Foods

    Enerplus: cut dividend multiple times and it dropped always down to around $3.00 but rebounded recently to around $15. My ACB is slightly over $21 per share.

    HLF – I never expected them to fall that much. I mostly eat their healthy fish products (multigrain coating), when I have fish.

    Best Investments : Facebook , Boston Pizza Royalties Income Fund

    I bought 10 shares of FB at $38 per share on the IPO date and currently up over 300% on this position.

    • My first comment earlier did not show up. When I checked to see your response. As soon as I submitted the comment immediately above all of them show up. Technology is full of bugs, but hard to imagine life without the internet !

  7. My worst mistakes were buying penny gold and silver stocks in 2003/4. I got crushed in the meltdown of 2008/9. Too many others to mention but most involve selling too soon.

    • Rob says:

      hey Stock

      haha I completely forgot i tried a penny stock before with some play money. it sucked…. no more penny stocks for me…. selling to soon is a great one, i always wonder that when selling.

      cheers

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