My sad, sad lose lose scenario story…

The year is too long ago, and I’m just a young boy talking to a friend that also have an interest in investing in stocks.  We both separately found this incredible product called “New York Seltzer” water during our employment at a grocery store… It the closest thing to the perfect flavored beverage that we ever tasted.  It seemed like a no-brainer investment, a sure bet!

Myself being a poor boy, I could only muster up $200 to use as the cash for investing in the stock.  I told my grandfather of my plans and he said to go ahead, but that it’s very risky and the investment will probably not turn out the way I expect!  He also said a new word that I was not familiar with, he said my investment was a “speculative” investment. I reassured him that this product was a sure bet since the product was even better and healthier that pop.

Needless to say the stock was doomed, but not because of an inferior product… In fact that product was far superior than anything that I encountered on the beverage market.  The problem is that nobody wanted to pay a premium for “flavored water”, even if it did fizz like pop.  I believe that there was also business reasons that the stock was doomed, but I didn’t have the foresight or knowledge (or access) to dig up that type of information.

So the moral of my sad, sad story (I was devastated) is that even though the product may be the best I’ve ever experienced, there may be other reasons that such investments of time and money maybe be a lose lose bet from all angles.  Quality does not always mean a win, and sometime such investments are lose lose scenarios from the start.

So what did I do?

Lesson learned…, took my beating, licked my wounds and move on less speculative investments that have less chance of going to zero.

Do you homework and think it through from all angles…

Good luck,

Don