Statements
5 from 15: Timbercorp – our worst Buy ever
How did we lose 96% on a Strong Buy recommendation? John Addis has the story
It is one thing to lose 30% or even 70% on a stock and quite another to lose almost the whole lot. And it is something different again for that to happen to a former Strong Buy recommendation. That’s what makes Timbercorp our worst call ever.
In picking five recommendations from the past 15 years – Roc Oil, ARB Corporation and the iron ore boom have previously featured – Timbercorp was thus an unavoidable and unpleasant choice.
In the 18–year history of Intelligent Investor, I recall just one other example of a Buy recommendation going under – Croesus Mining in March 2005. Croesus was always presented as a speculative recommendation, so its failure was no great cause for alarm …
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