[knock on wood] I've been doing fairly well with my mock portfolio this year -- I attribute that to the fact that I had a good reason for choosing the particular companies at the time of each purchase or short: Disney due to the Comcast offer; SGI because of their new products, niche, and recent contracts; and Anthem because of their (recently approved) acquisition of Wellpoint. And that leaves JetBlue -- the one stock I chose on gut instinct. Let's see where that got me.
I added JetBlue to the portfolio on February 17th, at a little over $25 a share. After reading through their recent Annual Report I was fixiated on not their numbers, but the fact that they have television monitors and satellite radios for each seat. "That's awesome!" I remember thinking. And my gut said that others would think they were awesome too. My gut didn't say anything about rising fuel costs. Let that be a lesson to me: never buy a stock based on wow when there is no valuation to back it up, or when I haven't thought through the near term risks that could adversly effect the holding.
Since I added JetBlue, it is down $586.50, or over %15 of the original investment. At this point, I'm setting a bottom of $20 -- if the stock reaches down that far I'll mark this down as a lesson learned and move on.
