2011 -- A learning year in review
Failure is a painful teacher......the sting of the correction bites hard, but its lessons are often learned the best. I have several years of investing under my belt. I've seen quite a few things. I have a process and discipline and accountability in my investing processes. I've never seen anything like what happened in Chinese small-caps in 2011. I took a beating. I felt foolish. I wrote a lot of blogs that I hope a lot of people ignored touting a number of BAD Chinese stocks and companies. I wrote and re-wrote and re-wrote the rules of engagement on how to profit from these stocks.....and I was wrong.....wrong....wrong. CCME was the end-game for me for Chinese stocks. Over a two-year span, I made OK money on Chinese stocks....not market-beating in a very up market, but money. But that is after the up AND the down. The up was not in 2011. That was the down part. 2011 was my first red year in the market vs the S&P.
People who had seen it before compared it to the S&L scandals in the early 90s.....that appears to be the most apt comparison.
I've spent the second half of 2012 retooling my watch list. I had let my watch list get to nearly 90% Chinese small caps in my short term portfolio, which is now wasted "research". I'm back in the game.....more experienced, scarred but stronger for it. I now watch stocks across several different sectors, have increased my patience for stocks on the list and am more willing to cross off a company for red flags that just aren't worth the time and energy.
Good luck in 2012 to everyone on CAPS. I wish for you to find wisdom as greatly as I did in 2011, but with a different instructor than mine. Fool on!