Jeff Santoro
👤 PersonAppearances Over Time
Podcast Appearances
So one stock that stands out to me is C Limited, ticker symbol SE, because I share the same regret that some of the analysts might have with this one.
So Rule Breakers sold this stock in November of 2023 after putting it in the penalty box, which is where we stick stocks when we're not sure what to do and we're just holding onto them to see how things go.
That sale missed out on 223% gains, and that's compared to 44% gains for the S&P 500.
So we sold out of a stock that was going to beat the market.
Now, at the time, the reasons for selling were logical.
Competition was hurting margins.
And after flirting with profitability for the last few quarters, C suddenly posted a quarterly net loss.
So the future looking a little more murky than perhaps we thought.
Hindsight's 2020.
C Limited's net income was about to march up and to the right for the next several quarters.
And in the most recently reported quarter, net income hit $375 million, which was a 145% increase over the previous year.
So the lesson here, I think, is that sometimes patience pays off.
The strong top line growth in the e-commerce and fintech sectors could have been enough reason to hold on until the bottom line turned things around.
And, you know, sometimes we need to have the conviction to look at the whole business and not just the struggling metrics.
And I was guilty of the same impatience.
I sold my shares just a few weeks before the Motley Fool analysts decided to do the same thing.
But as you mentioned with Netflix, selling too soon doesn't mean you are locked out forever.
These massive winners often offer many opportunities to get back in.
So it's easy to look back at this list and simply blame a lack of patience.
I mean, you could make that argument for any stock that you sell that eventually goes up.