I received a note over the weekend from a BizNews tribesman looking for confirmation so he could pile into 2U shares after the price dropped sharply in the wake of last week’s quarterly results. As with Netflix, Mr Market was spooked when 2U offered a next quarter forecast below what Wall Street expected.
After reading the report, our community member concluded 2U’s shares are cheap enough to mortgage his house and fill his boots en route to making a fortune. After plunging 50% in the past four weeks, the stock is now $2 below its previous all-time low of $11 a share set shortly after its 2014 listing on Nasdaq.
2U is held in both the BizNews portfolios. We’re in good company. The online education leader is also co-owned by talented investors Cathie Wood and Ray Dalio. So doubling down is tempting. But Warren Buffett’s success came from a consistent strategy of knowing why and what you’re investing in, then staying the course despite Mr Market’s antics.
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That requires the discipline of diversification and not betting the farm, especially on a relatively small company. We’ll be adding to BizNews Shyft portfolio’s 2U holding at the next BizNews Portfolio update next Thursday. As in the two previous tranches, however, investing just 5% of the fresh capital. Sometimes with investing, success comes from simply sticking to your plan.
More for you to read today:
- Russians Have Already Started Hybrid War With Bomb Threats, Cyberattacks, Ukraine Says. Moscow is using cyberattacks, economic pressure and, most recently, false bomb threats, to undermine its neighbour, Kyiv says
- Inside the Woke Indoctrination Machine. After watching 100 hours of leaked video, we now fully grasp the danger of this ideology in schools.
- The Trouble With a Stock-Market Bubble. Stocks have rarely been this expensive. That doesn’t (necessarily) mean they’re headed for a crash.
WEBINAR ALERT:
(Thursday: February 24, 2022) BizNews Share Portfolio – Monthly update with Alec Hogg. Register here.
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