Sale of Global Invacom

On 08/06/16, I sold off my stake in Global Invacom at a price of $0.108, which gave me a loss of 36.28%. This was a bad trade that I made. I sold my shares because I felt that the business was not improving and the original thesis for which I bought it for was not the same anymore. It was very difficult for me to cut my losses regarding this trade but as I did not possess enough competence to continue evaluating the business of this company, I decided to get out of it.

This brings me back to the methodology of buying small caps with pb/nav < 1, which have not done well for me particularly. I guess this strategy is not suited for me, as I lack the temperament when dealing with stocks of this nature. It takes a deep understanding of the company’s business and patience to see results come to fruition. Well, this is another lesson learnt about myself, and I just have to pick myself up and carry on pressing on. Ganbatte!

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