seven lessons learnt

Here's what I hope I have learnt from this LCY debacle:

1. Use HC for gathering tips, warnings, and knowledge, but don't get caught up in the upramping and enthusiasm. I know this is obvious, but I keep falling into the trap! People who post on a stock generally like the stock, so a positive and optimistic consensus develops, then it becomes too easy to see things positively.

2. Consider both positive and negative interpretations of events. For example, when a company starts rearranging itself before a partnership is completed, it doesn't necessarily mean the deal must be good; it could mean the company is so desperate that it will do anything to accommodate the partner, and thus the deal could be bad.

3. Don't fall in love with a company or company boss. Don't start thinking the boss can do no wrong. They are not perfect mummies or perfect daddies.

4. Love the downrampers and critics! Nurture them. Encourage them. Listen to them. It's surprising how often they are right! Similarly, discourage those who ask the critics to leave.

5. After a bad deal, do not start icing the t**d. Thoroughly re-evaluate as if you are coming to the stock afresh. There are plenty of good stocks out there.

6. Don't over-invest in any company. Even great companies can run into problems.

7. Beware of filling in information gaps. If a deal is secret or the company isn't keeping you thoroughly informed, don't fill in the details with your own imagination or base decisions on partial snippets of research. Just treat it as unknown territory and be cautious. Partial information can be worse than no information because it might only be one side of the story, like a siren's song.