Tuesday, 11 April 2017

An Investing Story

Around 2008....I worked with a guy whose dad called him up one day about a stock....SIRI (Sirus XM Radio).  It was doing lousy and gone down to 10 cents a share. His dad was hearing some good stuff about a comeback.  Dad said he was going to $10,000 of shares (figure about 100,000 shares).

My buddy brought this up with me.  I just couldn't see the wisdom....it was a dying stock in my mind.  The buddy went ahead bought some stock (couple days later, it was around 12 cents a share).  I seem to remember it being near 150,000 shares that he bought.

Six weeks later....stock was near 18 cents a share, and I jumped into this.  I wasn't crazy over a huge number.....so I bought near 2,000 shares.  About two months later....it was near 25 cents and I sold my shares, happily.  I went back in a couple months later at 35 cents and sold at 45 cents.

My buddy and his dad were still into this in 2010, and I suspect they are still both into the stock.

Value now?  I was glancing at stock prices today and went back to look over SIRI.  His dad would have $500,000 of value.  My associate would have $750,000.

You come across some kind of gamble like that once in your life.  Either you take it or you walk away.

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