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 buy $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 2,500 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 eventually 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 SIRI stock prices today (sitting at $26 a share).  My buddy and his dad....if they were still invested into it....would have several million each.

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