Good topic Lefool. AVZ has been life-changing for me so I hope you don't mind a lengthy response.....
#1 - greed is (not) good:
I had "invested" in what was reported to be the biggest graphite deposit in the World (TON) and like AVZ, it rose and fell in the early days. As time passed it was clear that Management were complete fucking idiots as they gave themselves massive pay rises and freebies. BOD's came and went and each time they paid themselves what the previous earned and gave more freebies on top of that.
Over the course of 3 years I bought and sold enough to record a loss of about $20k and my final sale proceeds also of about $20k were rescued from the falling knife and it sits at 3c today.
Summary - Fuck you Gecko, I was greedy as TON climbed and too dumb to trade/sell parcels along the way.
#2 - falling in love:
Two other stocks (now both phoenixed or into Administration) shall be unnamed. The same mistake of holding on for too long - and believing the hype that they would turn around was made and exited with another net loss, albeit minor.
Summary - never ever fall in love with a stock.
#3 - Read, listen, ask
I had always enjoyed
@Freehold's level headed writing and never really had enough capital to test the waters of his 'suggestions'. There was something different about his writing about AVZ, so I researched the company. Only after educating myself did I take the plunge and bought a small parcel at 21c and sat back and watched... Read everything on HC, listened to what was said about the decor in general and asked a few questions along the way. No 1 tip is to really read up on Management, for example Jason Brewer from WFE. If it smells, stay away.
Summary - your own research is valuable.
#4 - history repeats
We all know of the rise to 37c, Klaus leaving AVZ at the worst possible time, and the drop to single digits. Well, despite being more educated than before, "oops I did it again" and at the time was not a very nice person to be around. My confidence sunk along with the value of AVZ in my portfolio and the thought of selling crept in. Even worse, liquidate the SMSF, give up trading and just buy blue chip and take whatever the market gave me.
Summary - how confident are you?
#5 - Doubling down
Every day is another opportunity to learn more than you knew yesterday. After more reading I backed my original research and vowed to not let this be the end of me. Along comes COVID and our stupid Government handed out cash to everyone. I have a good job and was reduced to working a 9-day fortnight so really only 10% reduction in income. The Cash Flow Boost came in at the time AVZ was 4c and I'm sure you can work out what I did. Whilst stupid taxpayers were stripping $10k out of their Super funds to pay for TV's and latte's , I was pumping it in and I quickly snapped up 250k units for my SMSF. The good ol' Govnut gives me a tax deduction for the funds tipped into my wife's name... Lucky Country? Bullshit - we're as dumb as .............. All up 400,000 units were bought in my company to end up with an average of 7c across the board. Total buy in $58k.
Summary - buy speculative with money you do not rely on.
#6 - Payoff = confidence
Wasn't long before the price began its Northward march and towards the end of 2020 there was definite signs of something happening. HC was becoming a buzz and Twitter accounts were jumping on it too. I guess it was the confidence of growing valuation that allowed me to ignore most of the shit going on. As the share price rose, the more I tuned out to forums or social media and really began to smile like the Cheshire Cat. My interactions of late are more about sharing home brew to the forum and ignoring the trolls.
Summary - patience and conviction of your own research
#7 - Pay it forward
Today I am sitting on an unrealised gain of say $500k and that's great but what if I could help others too? Last August I made my kids an offer as they had both saved some money. Buy $5000 in AVZ and I'll cover their losses and they keep the profits. Both jumped at it and today enjoy a 229% profit or a touch over 3-bags each. When a valid question is asked on a forum and I think I have something to add, I'll do so. Last night there was a tax question on HC so I gave my response. That wasn't good enough for some as they failed the foresight to see either end of the question/answer and the forum returned to a slanging match, duly moderated all over the place. Do I care? Not on your fucking life.
Summary - don't look back
#8 - Planning
I continue to hold every AVZ share bought. The speed with which it passes $1 will determine what I do next. My options are selling some or holding on. Both have merit and I look forward to having my convictions tested. Planning for the future is so much easier as my holdings are split between SMSF and a company. The SMSF has less opportunity to be "cute" with the tax laws so my long term plans for AVZ will come down to what dividends it pays. You can do so much more with a genuine Pty Ltd entity with for example vehicles, travel, wages , expenses that it is good practice to pay for an accountant to get your affairs in order. In my opinion, DO NOT USE THEM FOR FINANCIAL PLANNING ADVICE. Ask questions 2 steps ahead, but always DYOR.
Summary - seek professional advice, early.
#9 - What's next?
This is the unwritten chapters ahead and I can't tell you where I will end up. You need to determine your own future, that's none of my business. I look forward to taking the journey with you all. Valuations as high as $10 a share are appearing - I'm calling bullshit as there's
no way of predicting past the second year of production. If you don't know of the spreadsheet I'm talking about - you should - don't get suckered in by the
opinion of one person. Also research the term "confirmation bias".
Ultimately AVZ will allow me to retire much earlier than anticipated. I may end up in a new post code with the Countess by my side, an electric vehicle in the driveway, a big-arse boat at the marina and the first tee awaiting... Never will I forget the early posters of AVZ on HC, the positive and realistic forum here on TSE and The Count Backyard Brewery will be producing amber fluid for ever more...
Summary - that's MY future, I wish you the confidence in making your own!
From the heart,
TC.
PS .. .. .. .. .. #10 - Document it all. Every thought, every action...
