Buy and Hold: Taking the Bad with the Good

Co-founders Tom and David Gardner look back on The Motley Fool's journey with Amazon.com  (NASDAQ: AMZN  )  since first purchasing it in September 1997. The brothers discuss the ups and downs they've seen with the stock, now a 100-bagger for the Fool.

Amazon rose, then fell, then rose again -- but some multibaggers plummet and never come back. In this video segment, David discusses the inevitable losses that come with the Foolish brand of long-term investing, and how the gains make it all worthwhile.

Not every CEO can be as successful as Jeff Bezos has been with Amazon.

But over the past two years, Motley fool co-founder and CEO Tom Gardner has made it his personal mission sit down with dozens of the world's brightest investors and business minds on behalf of his Motley Fool ONE members — we're talking true American legends like Whole Foods co-CEO John Mackey, Costco founder Jim Sinegal, and even Vanguard founder Jack Bogle — as he scours the globe to find the next great company to provide Amazon-esque returns.

On March 20th, this "crown jewel" service will reopen to new members for only the third time ever. And to celebrate, Tom would like to offer you a front-row seat to watch these visionaries share the keen insights and unparalleled business acumen that got them to where they are in life.

Even if you aren't an investor, the business lessons you'll take from these conversations are priceless. So please click here to access our Motley Fool ONE member lobby and our entire collection of these interviews absolutely FREE of charge!

Tom Gardner: Now, there are some of these huge multibaggers you've had, that have not come back.

David Gardner: Sure.

Tom: How does that fit into your approach as an investor?

David: Well, I can think about Iomega, which back in the day at The Motley Fool -- as you remember, we were on the cover of Fortune magazine and it was partly a story about Iomega. Celera Genomics was a 9-bagger in six months, and we ended up selling not far above cost.

Obviously, I can always think back on times that I wish I'd sold something that I held.

Tom: But the holds end up mathematically massively outweighing ...

David: Yeah, when you take it all and all. Absolutely.

In fact, I gave this talk internally; you heard this two months ago at our monthly huddle at The Motley Fool. I said, "Rule Breakers has had 32 stocks that have lost 50% or more." That's the Rule Breakers service. I know I'm speaking to some members today. Thirty-two stocks have lost 50% or more. That sounds horrible, and it's not easy. In fact, it's painful, and every one of those I'm accountable for.

The good news, though, is that the 32nd best pick in Rule Breakers is up 160%, so you've got to do the math. You've got to be mathematical here. It's not advanced math, but play that forward and you see the incredible benefits of being happy to occasionally give away a 10-bagger and end up at cost, or suffer a 50% loss because you're holding all these other great things as the world is reshaped by these companies and you're a part owner of them, measured in decades.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2875803, ~/Articles/ArticleHandler.aspx, 8/28/2014 11:26:36 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement