United Food

[d.o.g.]

I think some forum members(including me) were the members of the United Fools' club(coined by d.o.g., member too i believe).

Oh yes. What a badge of shame. Back then, as a stock market rookie, it seemed like a great deal. It had all the right ingredients: huge market in China, high margins, a great balance sheet and a low price to boot. I got smarter as I lost more money on it.

Thankfully the lessons it taught helped me to avoid the subsequent vintages of S-chips which displayed the same pattern of irrational management behaviour in the face of pristine balance sheets and impressive income statements.

Sadly, such lessons usually have to be learnt firsthand. There is nothing like losing money to sharpen the investor's mind. Reading about others' experiences, it is all too easy to dismiss it all and say "I'm smarter than that, I won't make that mistake". Only when reality bites do we realize that we are actually not so smart.