I have noticed a trend of everyone posting about their biggest loss. And in a bear market most will have quite a few (me too).

I could talk about the stocks where I’ve lost the biggest % but still hold or the biggest realized loss for a sold stock. Or about the stock where I lost the biggest dollar dollar amount.

But instead I want to share some wisdom from a stock picker, Peter Lynch. He said the great will be right 60% of the time. As in you can beat the market by identifying 6 winners while also having 4 losers. He beat the market for 2 decades swinging and missing 4 out of 10 times.

For me the more important thing is to learn something these 40% to become a better investor. So I’ve listed some stocks I’ve learned the most from (by losing).

$ALB by selling to early. My thesis in 2019 was there will be more EVs in the future. And more EVs will need more lithium. Missed out on a 3-4 bagger by selling too early.

$TDOC and $OLO valuation matters. I still hold both. And I didn’t buy anywhere near the top. And I still believe in the future of each business. But I’m down. I didn’t have enough margin of safety.

$BIGC if you are going to overpay on valuation, pay for the leader in an industry. Not the 2nd or 3rd best. I have “over paid” for $MELI and considering overpaying for $ENPH. $MELI has been a very nice holding. Or maybe this should read buy great businesses during bear markets, so if you do overlay it’s a little less pricy. Looking at you $ASML.

$BABA and $STNE and $ILMN. Sell sooner when your thesis is broken. In each of the above the thesis broke. Government regulation change, too much risky lending, bought a start up that will eat on margins for a decade (respectively). One I sold for a gain, one a small loss and one a large loss. But in each case I waited months to sell AFTER the thesis was broken bc I wanted to be “a long term holder.” I could have netted a multibagger, a moderate gain and a small loss if I left as soon as the thesis broke.

Don’t let the losses get you down. Let them be lessons.