You may be wondering, ‘What is the Thinking Diary’? The Thinking Diary is my personal trading and investing report from when I first started investing up until now and until the day I die. Before getting into my first investment, I want to apologize for missing last Wednesday. This past week was a dark week emotionally. Without sparing the details, I do want my readers to know that after yesterday and today (Happy Easter by the way,) I am back grounded in my greatest joy, knowing my Lord and Savior, Jesus of Nazareth. Let’s dive into my first investment, that I would consider my biggest blunder looking back, yet I still own it.
DDD is a 3D printing and digital manufacturing company in the Computer Hardware industry and Technology Sector that provides their services ‘in North and South America, Europe, the Middle East, Africa, the Asia Pacific, and Oceania’ [1]. ‘The company operates through two segments, Healthcare Solutions and Industrial Solutions. It offers 3D printing technologies, including stereolithography (SLA), selective laser sintering, direct metal printing, MultiJet printing, ColorJet printing, polymer extrusion, and extrusion and SLA based bioprinting’ and more[2].
When I first bought this company, my Dad told me about it, and I bought into that this company is going to be a solid investment long term. The dream and one of the biggest futures of 3D Printing is 3D printing a compatible organ made from your own DNA. It is a scientific revolutionary leap in healthcare that I believe will occur because of the three most common complaints with people who need an organ like a kidney:
Because the organ is not compatible, the person in needs is completely dependent upon drugs for the rest of their lives in order to live functionally. And all drugs have side effects.
Organ availability
Pharma drugs are expensive
3D Printing a body part that you need in your own DNA solves all 3 pain points.
So you may be wondering ‘Well that sounds great, and they provide more 3D Printing services to different industries. Solid long term investment to me. Why do you consider it your biggest blunder?’.
I bought 200 shares of this company at an average of 37.21 and 200 more shares two months later at 26.44 during 2021 when 3D printing was hyped. Before it went down to 26.44, it went up to its 2nd historical highest at 39, and I didn’t sell before it went down to 26.44. And the current price? 1.85. Ouch. From a financial perspective, this is my biggest blunder. I could have sold this company at 39 for gain and got out of it before it went down to 26.44, but I didn’t want to sell. I could have cut my losses and chosen NVDA or Tesla. But I believed in this company and my Dad, and I wanted to hold this company long term. I thought as a speculative long term owner and just bought without a complete understanding of the company, all of its services, financial data, and proper position sizing.
And guess what? Despite the improper position sizing, not understanding everything I should have, and not getting out soon enough before it went down significantly reducing my losses, I still own this company because of three things:
My stubborn self interest of not actually losing 11k and..
I still believe in the company.
When I invested in this company, I thought as an speculative owner, not a pump and dumper.
Now you might be thinking the following thoughts: ‘What do you mean you haven’t actually lost 11k? Can you elaborate on your last two points?’
I will answer these 2 questions in my next articles in my article series for DDD. Stay tuned.
Disclaimer: I am long DDD. This audit represents an independent procurement/sourcing equity reprot, my personal sourcing methodology, and is not financial advice. The author is a Senio Sourcing/Procurement Associate by day. You should consult with a licensed financial professional before making any investment decisions. The Faust Projects LLC is not responsible for any financial losses incurred by readers.
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#Investing #TradingStrategy #FinancialLiteracy #SourcingScholar #Macro
