Deals we passed on
Stories and learning cases about investments we decided not to make, and the warning signs behind those decisions.
12 articles
Passing on a stock bought only for its shareholder perks
Price swings can outweigh the value of the perk. A learning case on passing when the perk is the only reason to buy.
Passing on a small stock that surged on social media buzz
A small stock surges in days on social media buzz. A learning case on passing when buzz is the only reason and nothing can be checked.
Passing on a hot IPO on its first trading day
On the first trading day, buying pours in and the price runs far above the offer price. A learning case on not chasing a first-day price set by supply and demand.
Passing on a company with growing sales but negative operating cash flow
Sales are growing, but operating cash flow is negative and the company relies on borrowing or new shares. A learning case on reading financial statements before passing.
Passing on a leveraged product you cannot explain
A product that doubles daily moves may not behave as expected over longer periods. A learning case on passing because you cannot explain how it works.
Why a stock with an unusually high dividend yield might be passed over
A very high dividend yield can simply reflect a fallen share price. A learning case on checking for possible dividend cuts and earnings before passing.
A second-floor unit above restaurants: why we passed
A studio of about 5 million yen on the second floor of a building with three or four restaurants downstairs. It was dim, with no direct sunlight, and prone to pests at night, so we passed.
A condo with unusually high management fees: why we passed
Repair reserve and management fees of 40,000 to 45,000 yen a month did not work against nearby rents of 80,000 to 90,000 yen, so we passed.
An old-standard condo for about 3 million yen, passed on after visiting the site
An old-standard condo at about 3 million yen. Visiting by day and night, the lack of people, piled-up mail and a dark building showed it was close to neglected, so we passed.
A sunless, damp room that smelled of mold: why we passed
A room that smelled of mold the moment we entered, with no sunlight and damp air. We judged by whether a tenant would live there and whether we would ourselves, not by the low price, and passed.
A condo with no visible management system: why we passed
A well-located, reasonably priced condo with no owners association, no reserves and costs collected only as needed. Major repairs might be impossible, so we passed.
A condo priced far below market, sold with a tenant in place: why we did not buy it
A condo that would normally sell for 10 to 12 million yen was listed at 8 million yen, with a tenant paying half the market rent. Little would be left each month and tenant rights are strong, so we passed.