Netflix Woes

Some time ago (see "I'm not Perfect" posted on 8 August) I wrote about how foolish I felt holding on to Netflix as it declined in price. I ended by saying that all my experience was telling me that I was doing the wrong thing.

Well, what do you know? Last Friday, Netflix declined by 41%, from $17.43 to $10.30 per share. The CEO had just announced a total change in strategy to defend against possible future competition from Amazon.com. I guess that my experience was telling me the right thing.

At this price, I think I will buy some more Netflix.

Consider this posting as one more in a series devoted to explaining how not to invest in the stock market.