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Well howdy there folks and welcome into today’s video hope you guys are doing great out there as always in today’s video we’re going to talk about three stocks that i’ve made um some mistakes in and i think you can learn a lot from mistakes right i mean in the stock market you’re going to be able to learn a lot from your successes right but mistakes and and when you
Think of mistakes don’t just think like you have to lose money right because there’s a lot of different mistakes one can be you you literally lost money on stock right another one could be you didn’t buy heavy enough when you should have bought a stock heavy enough right the third kind of mistake you can make is maybe you put money in a certain stock when really
Your money should have been better suited in another stock right and so those are just some mistakes you can make in the stock market so i want to kind of share some of these with you guys here today i hope you appreciate me getting into this and some of the mistakes i’ve made this year in regards to stocks i appreciate you guys being here and i hope you appreciate
Me sharing this with you and i think there’s going to be a lot to learn from video like today all i ask in return is that you smash that like button that’s literally it guys i appreciate you being here if you want to join us in stockholm that’s our free discord chat that will be linked in the description absolutely free to join in there if you’re interested in a
Lot okay already guys let’s get in so the first one of these three stocks i’ve made a mistake on this year is palin tier so you might look at it and say well this is going great man it’s the stock you bought this year you have 46 percent of it up 1300 bucks yeah that’s all great but the fact is around this one i did not buy nearly heavy enough right even remotely
Close to as heavy as i should have bought i should have bought this stock far heavier than i did but i didn’t and i bought 150 shares which at that time was 2 900 right and so i look at this and this was a stock i really really liked under uh twenty dollars a share and i even watched it go down to 18 and i bought it there in 1969 i never bought more shares and it’s
Just kind of disappointing because it’s such a small position that and here’s the thing about something like this a stock like palantir is perfect for my portfolio you know why because i don’t own anything like this so it’s not just that i believe in the company and kind of what they’re doing and how sticky i think that business model is going to be long-term but
It’s the perfect stock for my portfolio right because i don’t own anything like that i mean you know that’s a company that’s really at the cross-section of data and artificial intelligence in a huge company in the b2b space that’s going to get you know in my opinion exponentially larger over the coming years and so i just didn’t start the position big enough and
Now it’s gone up 46 plus percent since i bought in which makes it very hard for me to buy more shares not impossible i’ve averaged up on stocks many times in the past right but you know to average up on a 46 plus percent gainer just since i bought this year that’s a tough one right and where comes in to become a little more tough around palantir for me is the fact
That we when we look at the valuation as company right so keep in mind this mark caps actually not correct it’s actually over 55 billion as of today it takes like a day to reflect on yahoo finance they’re kind of a little laggy okay so the real price to sales ratio on palantir as of today is over 40. now uh you know if you don’t know price to sales ratio it’s
Essentially looking at the revenue versus where the market caps at and uh when you’re talking of 40 that’s like insanely insanely high like usually you should expect around a one price of sales ratio in most stocks or 1.5 somewhere around there for something like palantir you expect to pay up and pay a premium because two reasons one they’re more of a software
Business software type businesses right and this one’s kind of the cross-section of data and artificial intelligence what you’re going to have to pay for a premium on those sorts of business models is exponentially higher than something like a retailer or something like that right where you might be able to get a retailer at a 0.5 price of sales ratio a 0.7 or a
1 or something like that right so they’re always going to trade at premiums you’re likely going to see a lot of uh you know software related companies traded price to sales ratios between 5 and 20 between 5 and 20 right now when you talk about 40 that’s a whole different level of a price to sales ratio you’re talking that’s insanely high like basically what that
Means is the stock is pricing in massive growth so that company has to have massive growth just to fulfill the current valuation right and so that’s where you kind of get into some trouble and then you look at the forward p it’s at 131. so but this is really the big number because you know pound tier is just really starting to kind of get to profitability so i
Think the forward p is not as important to look at in a stock like this it’s really around price to sales ratio and that’s just whoa that’s way up there and so that’s where i get into a situation here and i say you know when the stock was a lot cheaper i should have bought heavier i didn’t have to make it into some huge position i didn’t have to make this into
A million dollar position or something but to go ahead and buy 50 000 or 100 000 worth of stock when i really liked it under 20 and it was at 18 19 a share i should have made that move right instead i kind of sat on my hands a little bit with this one and was kind of like i hope it goes a little lower it obviously didn’t happen it obviously has just pretty much
Skyrocketed since then and now we’re up over 46 percent on the position and now i’m in a position where you know it’s not nearly as attractive as attractive to me as a buying perspective you know i’m in this situation with palantir stock where i’m looking at and it’s just not nearly as interesting to me as a buying potential out there not to say they can’t still be
Money made here because definitely there’s a lot of folks that feel like this could be a multi-hundred billion dollar company down the road but it’s not nearly as interesting because of how high the valuations got right at 55 billion dollars you know this company’s gonna have to do a billion dollars plus of net income not revenue net income just to begin to start
To justify that that valuation right so let’s say the stock doesn’t move for the next three years let’s say the stock stays exactly here the market cap stays exactly here 55 billion right if this company gets to a level where they’re doing a billion dollars of net income then you could slap a 55 you know pe on this and it looks like you know not not too crazy for
A company that hopefully will still have a lot of growth right if they can’t do that that’s where you get into some valuation concerns and it’s like well you know maybe the valuation has gotten a little pushed so i like palantir i like the business model a lot i think it’s going to be an extremely sticky business model and i think it’s going to be a lot stickier
Business model than a lot of folks realize i like how they’re kind of at the cross-section of data and artificial intelligence by the way when i say sticky business model just to be clear about this what that means is essentially if a company uses palantir i think it’s going to be really difficult for those companies to leave palantir and um you know based upon
The kind of research i’ve done in the stock and so that’s what that’s what honestly makes the stock really really intriguing right it’s just when i look at it and it’s a 40 plus price of sales ratio now i can’t buy it i can tell you if and i’m not counting on this happening it might never go down again i might just keep going up but you know in any major way but
If it ever dipped below 20 again down that 18 19 range i won’t make the same mistake twice believe me i will buy the stock a lot heavier but yeah you know palantir just one i did not buy heavy enough and you’re gonna make these mistakes sometimes in the market when you know you’re kind of uh maybe get a little greedy around pricing or you’re like i hope it goes
Down a little bit and um yeah 46 that’s uh that’s you know if i put 100 000 in the stock right which is not a crazy amount at all if i just put 100k in and i’m already up 46 thousand dollars and that’s just in a matter of months right i think i bought this stock back in the springtime so yeah 46 000 in a few months not too shabby okay so yeah that’s the first one
Of these three stocks that i just you know have made a mistake on this year where i did not buy heavy enough despite really liking the business model a lot and believing in it long term so that’s the first one up here let’s get in the second stock of these three stocks that i made a mistake on and that is voyager digital all right voyager digital so this one in
Coinbase i kind of combined them so coinbase um i bought some shares in the ipo that was a really dumb decision essentially i never buy ipo stocks like you know i usually stay away from that i got caught up in the fomo and around voyager as well no let me be very very clear i love voyager for the long term i’m a believer in voyager for the long term and all those
Sorts of things so i want to make that really clear i do not regret buying the stock voyager what i regret around this one is the fact that i got in this one way too soon and now i’m down about 30 percent on this stock right we’re pretty dang close to 30 percent what happened with voyager is i definitely got caught up into the fomo and you can see some of these
Shares i bought here you know when i was up 18 22. i got caught up into the fomo when it comes to voyager and essentially what happened was i was looking at you know this stock in the spring and it was really exciting right obviously the revenue growth crazy the revenue growth still is crazy the excitement the new customers coming in but ultimately i bought
It at a time when you know bitcoin and the cryptos were going crazy like look at where bitcoin peaked at bitcoin peaked at somewhere around march april and that’s when i was buying the stock super heavy and look at some of these shares look at this one this is my worst batch here down 45.5 percent on this one you’ve got to be flipping my flapjacks like man has
That gone bad and um so with voyager here i’m in a situation where i definitely want to uh you know get my cost basis down and so i’m going to likely continue to buy these shares as the stocks in this 12 range or wherever it goes whether it’s 10 or 13 or 14 and get my cost basis down because three times right now it’s and 62 cents there right 17.62 cents i got
To get that down to like 15 maybe under 15 because i do like the company long term like i said i just i i i added it too aggressively too dang fast and i even was averaging up on shares because if you look where i started buying a 16 and then look at next thing you know i’m just i’m adding adding adding too dang aggressively and at some really bad prices to get
Caught up into the crypto fomo that was happening at that time because there was a lot of it and then there was there’s starting to be the excitement around coinbase going ipo and so much excitement there and these these crypto brokerages making money hand over fist right now and just you know i just got in at a lot of bad pricing on this and this can happen in
The stock market like sometimes your success in terms of the percentage gains you get in stocks a lot of times it’s going to depend on what price you bought at right um you know for me buying tesla stock back and then we’re gonna get into this third stock for me buying tesla stock back in you know 2018 2019 at split adjusted basis of you know 40 bucks 45 bucks 50
Bucks whatever right and now that stock’s at 750 you know i’m looking great on that however somebody that bought tesla stock at 900 they’re down you know quite a bit on that stock right and they were down a lot more uh you know a couple months ago and so a lot of times in stock market you can have two people buying the same exact stock but the timing is key even a
Matter of a few months can make a huge difference in stocks look at how much value tier has gone up right you know buying valentine back in the springtime when it was you know 18 19 a share you’ve made crazy gains on that buying palantir now hopefully you make crazy gains in the future but what if it goes back to 1819 and so this is a kind of a lesson to be learned
Here pricing is key and getting in at the right time for stocks is absolutely paramount if you don’t really time things out as we didn’t hear with um you know obviously voyager whew meanwhile there’s some folks that obviously are in voyager stock and have four dollar cost basis on it five dollar cost basis seven dollar cost space and those folks are looking great
They’re like i don’t care if it’s 12 like i’ve still doubled up my money or up 80 or 70 or whatever right meanwhile somebody like myself is like oh i’m down almost 30 on the stock because i got way too caught up in the crypto fomo during that you know period of time there and um i’m paying the price for it now now what like i said what i need to do when i look at
The stock since i still love it long term just as much as i ever have if not more than actually when i was buying back here i need to average down the stock i need to buy more and more shares you can see you know in july 15th i bought let’s see 201 shares there at 11.96 here i bought 800 shares at 10.99 500 shares here at 15. the stock’s 1247 i need to add another
500 to a thousand shares maybe even tomorrow like if you know if the stock’s down a bunch tomorrow maybe i add it right today i had a pretty good day it was up five percent but who knows maybe i’ll send tomorrow at weekends and then i’ll go ahead and add shares okay and so yeah that’s a lesson to be learned you know crypt crypto can be crazy volatile right and
Um you know when it’s going through one of those crazy up cycles you got to be careful and i learned that lesson right here you know by the time it was you know forty thousand fifty thousand pushing sixty thousand that was up you know uh what two thousand percent from the bottoms in twenty twenty you know this is the cr you know bitcoin for instance bottomed out
What was it um let’s see i think it was three thousand something bitcoin bottomed that in uh 2020. you know to make that sort of move and then getting the crypto brokerages a little late to the game there so um i still think this is gonna be a huge money maker for me long term which is why i’m more than willing to average down on this and start building out this
Position bigger and bigger throughout september it’s just we get in a situation where you know i just i had it way too aggressively way too fast during you know a crypto fomo uh period so yeah pay the price and um you know it is what it is like you know i’ll never ever you know say i’m perfect in regards to stock market i make money a lot more than i lose money right
And i get into some phenomenal stocks that you know gain us 100 200 400 600 a thousand plus percent but every once in a while you know i’m gonna make a mistake i’m gonna get into stock too early too fast and um that’s the situation with voyager here so yeah anyways that’s the fundamentals on that one um you know obviously the business model it’s a crypto brokerage
They want to become a stock brokerage over time the company said that uh credit cards debit cards those sorts of products are common um maybe even more banking related products and i think there’s a shot that they could become a giant in this space but obviously i have to limit position sizing maybe i build into 200 maybe a quarter million dollar type position
Over time and then just hold the baby and um you know hope the management team there does a does a good job a lot of the the people high up on the team are are you know came over from e trade so i have pretty high confidence and conviction that they can get into the stock brokerage game as well and attract more clients that way and maybe you know more folks want to
Just use them solely for all their you know purposes so yeah that’s the second stock let’s get a third stock up here that’s small direct club so small direct club’s another stock here where i just did not add aggressively enough right uh 38 000 is my current value i put 32 000 into it we’re already up 19 on this one in a very very short amount of time and um you
Know look at the the shares i bought 505 492 481 461 on this one those shares are up 26 so far so this one i didn’t quite add aggressively enough this is a complete opposite scenario as voyager so with voyager you know crypto fomo was going on and i was adding way too aggressively smile direct club complete opposite situation it was like everybody wanted to get
Out of this stock all at the same time and the stock was near 52 week lows when i bought this like if you look at a smile direct club sdc’s 52 week low it’s pretty dang close to these shares i bought right here okay it’s four something i don’t know if it’s 450 or 460. but it’s really dang close and look at these shares the you know august 13th i bought these 2021
August 16 2021 august 17 2021 august 19 2021. the bottom line here is with smile direct club is when you see a stock that you really like the long term which smile direct club i really like for the long term for many various reasons including the fact that uh obviously you know maths will start going away over the next year i mean they’ve already started in a lot
Of states around the united states they’ll start more and more people are going to be looking at their teeth and thinking hey i want to straighten them do things like that and um you know a lot of folks have just put off dental work over the you know last what 18 20 months since ronnie rona started right now a lot of people want to just go the dentist in time of
A a pandemic essentially right and so smile direct club i think is going to be a direct beneficiary plus they have a lot of things long term that i love with this business model and so i’m looking at a company here that you know was just a beating down dog and i should have added it more aggressively here the initial position was really good right that at twenty
Nine thousand but then i added two weekly here right three thousand seventeen hundred forty one hundred you know that’s not aggressive enough as it was going down it should have been 10k 10k 10k as it was going down there right or something like 5k 10k 15k as it’s going down because usually what i like to do in most stocks is i’ll build out that initial position
Right and then if it goes down more the more it goes down the heavier i will add to that stock right in smile direct club i didn’t stick with that plan and look it it it cost me so it cost me a whole lot of gains right and so i look at this one and i’m like whoa you know it’s uh i really like the stock over the coming years i think it has huge upside potential
And i think it has actually pretty low you know downside potential i think the downsides mostly already happened in the stock and uh yeah i just didn’t build fast enough and um you know those that should be you know more like a fifteen thousand or twenty thousand dollar gain we should be sitting on right now rather than a sixty two hundred dollar gain and so yeah
That one i didn’t add uh quite aggressively enough so hope you guys enjoyed a video like this where we get into some mistakes i made in 2021 hope you guys appreciate a video like this and let me know if there’s any mistakes you’ve made in 2021 around any stocks i would love to hear from you guys as always in that comment section i think there’s a lot you can learn
From your mistakes and your successes out there guys so don’t forget to smash that like button if you enjoyed this video here today and check out videos on financial education three i am posting straight educational content on financial education three right now including a ton of whiteboard videos so if you haven’t got to check out fe3 lately check out financial
Education three yeah a result you know i’m just i’m just giving gems out there like every day so much love as always guys and uh have a great day peace don’t forget to join us at stockholm in hungary bowl download it ios android
Transcribed from video
3 STOCKS I JUST MADE A HUGE MISTAKE ON By Financial Education