Have you ever had one of those situations where you thought you had a potentially good investment opportunity right in front of you, but for whatever reason you just didn’t pull the trigger on it?
I had one of those just two weeks ago to this day. It just seemed like an intriguing opportunity, but I never took the plunge .
The opportunity I’m talking about was the chance to invest in Japan after the terrible, tragic earthquake and tsunami in March 2010.
Those of you who are regular readers might remember my post from March 18 titled “Is This a Good Time to Invest in Japan? “. The whole premise of the post was that the prices in the NIKKEI 225 plummeted in the week after the disaster, and that I thought Japan was undervalued at that time. In other words, a market overreaction took place, leading to a good long-term buying opportunity. Sometimes we might listen to investor tips, other times – such as this – we make a determination on our own.
How low did it go? At the time of the March 18 article, the NIKKEI 225 index was at 8,962.67. As of March 31, the index was at 9746.62.
That’s an 8.7% increase for the NIKKEI 225 in just 2 weeks!
By comparison, the S&P (where I have been, in an index fund) grew from 1,273.72 to 1325.83 over that time period. This represents a 4.1% increase in the same two weeks. Still pretty good.
However, the 8.7% for Japan is better than the 4.1% for the S&P 500!
This isn’t surprising. After all, I called it, right? 🙂 I’ll pat myself on the backfor identifying this as a buying opportunity and putting it here on Squirrelers!
That said, once done with the pats on the back, I can start kicking myself as well. Except the kicks will be harder than the pats on the back 🙂
Why? Well, I never did anything about it. Despite taking a chance by calling this out as an intriguing investing opportunity, I missed the boat. Delayed by one day, then two days, then finally it was too late. The window of opportunity was gone. The analysis was sound, but the action was missing. Ultimately, risk-aversion took over.
Ideas and plans can be good, but they don’t help you unless you take action on them. Without action, ideas are just that – ideas. Another reinforcement of an old lesson.
My Question for You:
Have you ever thought it was a good time to make a particular purchase, only to not follow through on it? If not you, maybe you know of someone who has faced this situation.