In this episode, I talk about my investment blunder - which was buying Beyond Meat shares.
Key summary:
- In August 2020, I purchased £1000 worth of Beyond Meat Inc - a then trendy company in the plant-based meat industry which looked to be capitalising on the demographic shift in the Western World to a more environmental/ethical diet.
- Since investing, poor company management, industry headwinds and rising interest rates have caused the stock price to fall from $131/share (my entry point) to c.$8/share. I'm sitting on a paper loss of 93%.
- Whilst this has been a bitter pill to swallow, I have taken three stock picking lessons from this:
- Beware of confirmation bias
- Have a clear exit strategy
- Calculate a target price with discounted cashflow analysis and don’t overpay
- Whilst buying Beyond Meat was a large error, I’m glad that it’s happened early on in my career. This reduces the change of making similar errors in future with more meaningful sums of money.
Link to discounted cashflow model video here.
Want to get in contact with me? Use the following channels:
Instagram: @_makeitstack TikTok: MakeItStack Website: https://caytonanalytics.com/ Email: william.waterhouse@cayton-analytics.com
Disclaimer: This podcast is for educational purposes only and should not be construed as financial advice. If you are unsure of making any investment decision, please contact your financial advisor.
