I'm not perfect

Long time readers of this 'blog know that I have been skeptical about the stock market since Depember and moved into 40 % cash in March. That makes me look pretty smart right now, but I'm not perfect.

About a year ago, Mike Rowe told us about a DVD rental service called Netflix and gave us membership information. We tried it and thought it was a good idea. It also seemed like it might be a good investment. So I bought 100 shares and then started studying the company. What I learned looked good, so I bought a lot more. Other people liked the stock too. It went up and we sold in March at a good profit.

As time passed, I felt lonely for Netscape. I missed it. So, I bought 100 shares to keep me company. Then a couple weeks ago Netscape reported its quarterly profits. They were great, but no surprise. So, the stock went down maybe 10 to 15%. I bought another 100 shares. Then a legal firm announced that they were initiating a class action suit against Netflix. It went down more. Then, when the market sold off this week, it dragged Netflix down some more. A lot more.

As quick as you can say, "Deer in the headlights" I did nothing. I am holding 200 shares of Netflix at a considerable percentage loss and trying to convince myself that this is a good long term investment. However, 40 years of investment experince is telling me that I was pretty stupid.