Dumb Luck

     I recently decided that with interest rates nearing record lows and could possibly could go lower, I should invest in a home building company. After doing a little research, I decided that KB Homes (KBH) would be a good choice. I placed the limit order on an aging computer with a faulty keyboard. Within a week or so, I received a confirmation that my order had been executed. When I finally got around to reviewing my portfolio, I realized that I had not actually bought KB Homes, instead, I bought a Korean bank holding company (KB). Oops. Apparently, the keyboard did not connect on the letter "H" and the symbol (KB) was purchased erroneously. By coincidence, the stock prices of the two companies were very similar. While researching my new holding, I realized that it had some features that fit my criteria for investment and the stock has actually gone up since purchase. This is not the first time that I have screwed-up an order and probably won't be the last. The first lesson here is to be careful when placing on-line orders, this could have been a costly mistake. The second point I would make is that good things usually happen when investing in the stock market. Over the long term, stocks of high quality companies will produce above average returns for investors, assuming a diverse portfolio. I never know for sure if the stocks I buy will be winners or losers but I do know that if I was not in the market that I would have no chance to participate in its gains. Just like buying a lottery ticket does not guarantee a win, not buying a ticket guarantees you will not win. A third and final point is to review your holdings on a regular basis to identify any dramatic changes to your portfolio. This morning, I noticed one of my holdings was up 40% in pre-market trading. I would be lying if I said I expected such a move in Biogen, I just liked the company's prospects and valuation. A recent half pot lottery conducted by the West Side Nut Club sold over 1.2 million tickets, resulting in a prize of over $600,000 for some lucky winner. Unfortunately, the holder of the lucky number, has failed to check their ticket and the money will soon be donated to charity. Talk about dumb luck!