2021 Birthday Buys - Where are They Now?
For as proud of myself I was in my 2022 Birthday Buy check-in, I am about that equal level of cringe about my 2021 picks.
In 2021, I was less than a year into self managing my investments. I had not yet started managing my Roth IRA, and only had my Taxable account. I went crazy diversifying in 2020, and this was my attempt to reign in the over-diversification and focus on buying solid companies. Looking back, that didn't happen in 2021.
I was listening to a lot of podcasts, following highly followed Twitter accounts and doing a lot of reading. I fell victim to blindly following "the experts". I am not proud of my 2021 buys. This was before I started diligently journaling, so I do not have actual record of my thought process, just going off of memory.
These positions were initiated on 1/11/21 and results are as of Market Close 1/20/23.
Without further ado, my 2021 Birthday Buy Health Check:
  • Entry Price: $21.88
  • Current Price: $19.23
  • Change: -12.11%
  • Average Cost Basis: $22.22
  • Number of Buys: 2 buys, 2 shares total
  • Opinion: This was definitely a buy the hype stock. t It felt like everybody on Twitter at the time was talking about how great $T was, especially at the price. I bought. Luckily, I did not "load the truck" and my generally cautious nature and buying in small quantities helped me out. I only added one more time - in March of '21. Through the spin off of $WBD and other difficulties, I have continued to hold. $T has actually climbed to be tied for the top holding on my Scorecard at a 4.5/6, which is a testament to my mentality to wait on holdings. It is time for me to do some due-diligence to see if it is worth continuing to add. $T only makes up 0.23% of my portfolio, and I will sell the position if I do not add to it when it hits the 3 year mark in 2024.
  • Entry Price: $96.50
  • Current Price: $63.32
  • Change: -34.38%
  • Average Cost Basis: $96.46
  • Number of Buys: 1 buy, 1 share total
  • Opinion: I think I read something about Hasbro earnings the week I was to make my buys. I wanted something in Consumer Discretionary and this was a nostalgia play. Not smart to make decisions off of emotion. Much like with $T, my Scorecard has kept me in check and $HAS only makes up 0.37% of my portfolio. The Scorecard score is low at 2.5/6, so I do not see myself adding to this and most likely will be selling in 2024.
  • Entry Price: $95.29
  • Current Price: $41.33
  • Change: -56.63%
  • Average Cost Basis: $95.29
  • Number of Buys: 1 buy, 1 share total.
  • Opinion: Buy products and companies that you use and interact with, they said. It will be fun, they said. Not so fast, my friend! JUST BECAUSE YOU USE AND ENJOY A PRODUCT/COMPANY/SERVICE DOES NOT MEAN IT IS A GOOD INVESTMENT. $CHWY is one of my worst investments with only $COIN providing a larger loss. $CHWY is the second lowest rated holding on my Scorecard with a lousy 1.5/6 ranking. Much like the others, only 0.24% of my portfolio and I will most likely be selling in 2024.
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Not good picks, at all. $CHWY does not fit my philosophy, at all. $T might end up being a decent decision, but there are other companies I will be buying before it. Not much else to say, but these three companies definitely put a sour taste in my mouth.
Conor Mac's avatar
Tough year for performance comparisons, hopefully they do better on a longer time scale!
Joey Hirendernath's avatar
"Buy products and companies that you use and interact with, they said. It will be fun, they said. Not so fast, my friend! JUST BECAUSE YOU USE AND ENJOY A PRODUCT/COMPANY/SERVICE DOES NOT MEAN IT IS A GOOD INVESTMENT. "

Such an important takeaway you've highlighted. Appreciate your transparency and candour I think it is so easy to get influenced by the bias of companies that you see around you. Are there any mandatory questions/framework you have for your birthday buys for this year?
Scoreboard Investor's avatar
@joeyhirendernath I have my scorecard now, which I didn’t have then. So that helps. And I forced myself to do some deeper research prior to buying. Doing my monthly watchlist updates gave me a platform to check in on potential adds a number of times over the past half year or so. I made better selections in 2022 and hopefully 2023 will be the same

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