Well, that happened quickly. Just a week after making my first purchase, I made a second one, of a company that I had never even looked at before. I was vaguely familiar with the name through the writings of some fund managers, but I had always assumed that the investment opportunity was well and truly gone by now.
Anyway, this company showed up in a scan I did yesterday, and I cracked open its latest report, more from curiosity than anything. Lo’ and behold, I think there is still a solid investment opportunity. I spent about 5 hours yesterday afternoon researching and ginning up some estimates and I think this one could deliver 2-3x my money in 2 years at best. At worst I figure it will result in maybe a 60% loss, but that is less likely if I am patient.
I just took a 5% position at first, although I could see this becoming a 10%er or even bigger if prices were to fall further. There is always the chance that I’m wrong after all, in which case I could wear some stiff losses. The next report in August will show if my thinking is on the right track. This one doesn’t pay a dividend, so it will reduce the number of non-dividend paying stocks I’m able to buy (see ‘The Rules‘).
In line with the disclaimer, I’ll be posting about my purchase in 7 calendar days time, probably next week weekend. And I will be posting about my first purchase soon (still fixing up the draft). That will probably be out tomorrow.