My job as financial commentator is to help readers make educated decisions so they can profit from those decisions. It’s pretty black and white.
Well, about three weeks into Twitter (TWTR) trading as a public company, I was asked about the pros and cons of buying the social media stock. On Nov. 27 (the date of the article) it was trading just shy of $41, $15 higher than its IPO price. I recommended that investors wait until it drops below $30, closer to its $26 pricing.
We all know what happened after that. It went on a 78% tear before hitting the wall Dec. 27. I still believe Twitter is overvalued, but I should have been open to suggesting investors use some fun money (that which you’ll never need) as an early Christmas present to themselves. I hate it when I miss those big moves. For that, I’m sorry.
Target (TGT) also disappointed me — I thought TGT stock was going to fly to new highs thanks to its foray into Canada. Unfortunately, between messing up almost everything about its expansion north of the border and the end-of-the-year credit card breach, it has been a terrible year for everyone in Minneapolis.
One thing I was happy about was my “5 Top Russell 3000 Stocks to Buy in 2013.” None managed to double a second consecutive year, but Patrick Industries (PATK) came close, finishing 2013 up 94%. Combined, my five picks averaged a total return (through December 27) in 2013 of 43.3%, 11.4 percentage points higher than the S&P 500. I’m most proud of these picks because none of them hit the skids a year after delivering tremendous returns for their shareholders. That’s not easy.
The best day in investment journalism is when you help someone make a profitable decision.
As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.