Investing New Year Resolution
What I want to do better in 2025
No matter how good you are or how good you think you are, you can always improve your investing strategies and execution.
2023 Resolution:
I made a similar commitment to myself at the beginning of 2023. I just came out of a time where I didn’t cut a couple losers quick enough which inflated losses which I don’t care to revisit. I find many fall too much in love with their original investment thesis, which can cause some to ignore potential warning signs. I was a little guilty of that. Often investors should go back and ensure their original thesis survives a back test. Nobody is going to have a perfect stock picking record. Inevitably you will see one or more of your picks go into the red. It’s then up to you to ensure they do not fall into the abyss. I made a commitment to myself to be better and be more critical of my current holdings than I am of new stocks under consideration.
This goes for my top annual picks as well, and you may notice that I tend to add a more critical lens when reviewing those company’s new initiatives, strategies and of course, their financials. Not only do I typically invest more heavily myself into these picks, but I recognize others may do so as well based on MY thesis. I feel that adds a layer of responsibility to call out concerns that I have. One example of that is Now Vertical (NOW). Five months after I picked it, things were not looking so great - I pulled the plug and was quite vocal (still am) about it. I was able to get out without any losses. Luckily for those may not have, eighteen months later they look to maybe have some life again, but they’re still dead to me. More recently was Thermal Energy Group (TMG) this spring. A less severe case but I halved my position early on in the year when concerns arose and that has turned out to be a wise decision. I actually still have a good feeling they will find their groove at some point.
2025:
One thing I realized in recapping what I did in 2024 is that I absolutely sucked at adding to existing successful positions. I look at stocks like Enterprise Group (E.TO) and Kraken Robotics (PNG.V) whom were both 2024 Wolf Picks. I almost hold the exact same position as I was when the year started. It wasn’t that long ago I thought to myself ‘how can I own so little of this”?
With that said, those positions are up over 300% for both, so there is no need to start a GoFundme, but I did miss some key opportunities during the year.
I even highlighted areas of potentially entry or add areas to others in the example of Enterprise Group above and didn’t act on it.
The Kraken Robotics example may be even more egregious in terms of zones I highlighted for others but didn’t act on myself.
I think a good part of the reason is that I’m continually looking for the next undervalued stock and I spend a great deal of my time writing reviews. That isn’t going to change, but sometimes the next best thing is something you may already have.
So there you have it. I think anyone, particularly those who dabble regularly in microcaps should think about their strategies and how well they execute on a continual basis.
I wish everyone a healthy and prosperous 2025. Happy New Year!
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Disclaimer:
My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from companies I review.
Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.
Great critique wolf, nice one....with perhaps a lesser portfolio than you I've chosen to add to that which is performing well or with great fundamental than selling some of those shares to try a new stock...that's also based on many other influences , ...flip side is I never seem to have cash available for pullback buying...catch 22 I guess.
Thanks for your views and work in helping us all.
Fantastic wolf thanks for sharing a honest humble report. Keep up the great work I remind myself now hall of Fame baseball players get in by striking out 6 out of 10 times :-)