Last month I wrote about the five best holdings in my portfolio, and thought it was only fair if I took the opposite approach and looked at the positions I currently hold that have fared the worst since being established.
It doesn't matter how successful of an investor you may be, every investor loses money on a trade now and then. It is unavoidable. It is easy to discuss our winning trades, but not so easy to discuss those positions that have failed to live up to original expectations.
Among my five worst positions, only two positions have lost substantial amounts, with the other three being pretty close to break-even since purchase. I wish I could say that I have only been wrong twice, but in all honesty I tend to cut my losses pretty quickly when things go wrong, and periodically liquidate losing stocks. The five stocks for this article are not the only stocks I have purchased that lost money, just the five that I own right now that are in the red.
Every investor should strive to stay on top of his or her positions, and continually re-evaluate whether or not there is a place in their portfolio for the stocks. Let's take a closer look at my five worst holdings as of right now, and my thoughts on whether or not the position is still worth holding.