A long while ago, I knocked off a goal that was on my list, which was to invest in a company working towards making life easier for the growing number of diabetics in the world.
That company was Dia-B Tech, and I just discovered that they are pretty much out of business, with shares in suspension since last year and just a few thousand dollars left in the bank.
Long story short, I don’t think I will be seeing any of my money back.
It reminded me of the two tips I have heard about investing in shares that I must remember before I doing something like this again:
TIP 1: Never invest more than you can afford to lose
TIP 2: Never invest in anything you don’t understand
I did follow the first tip, and so the money I lost is not something I was banking on.
The second tip though I neglected to follow. I know nothing about biotechnology, or how long drugs take to get to market, or what the likelihood is that a drug will get to phase 2 testing or beyond. If I had my time again, I would definitely have invested in something that I at least understand.
The only mistake is one you don’t learn from though, so I would say that I have now learnt my lesson (and please take this advice before you start playing in shares).
p.s. Tip 2 is attributed to a relatively well-known investor. You have heard of him. Warren Buffett is his name.
