Do you know a company called Nichi-Iko?
It was a company that made and sold generic drugs and was once listed on the stock market.
And KAZUKIN held its stock.
In fact, Nichi-Iko was the first stock KAZUKIN ever held in his life.
The glorious number-one stock of my investing career.
To be precise, it was number one (lol).
If it only drops a little, I don't panic
If a stock only drops a little, KAZUKIN doesn't panic much.
If anything, as a contrarian, I have enough composure to
say “It's falling again...” and drink coffee while looking at my unrealized loss.
If it falls a bit, buy more.
If it falls further, buy more again.
And if it falls even more, close the chart.
That is KAZUKIN's style of mental management (lol).
But Nichi-Iko was not an ordinary decline
But Nichi-Iko was not an ordinary decline.
I remember there was a lot of bad news.
Earnings worsened, it entered restructuring, and finally it was delisted.
In other words,
KAZUKIN's specialty, “if I hold long enough, it'll come back someday,” became unusable.
Not only did the price not recover; the stock itself disappeared from the market.
There was not even a place left to wait (lol).
The company was rebuilt, the shareholder was forced out
The company itself remained afterward and continues its business today.
The company survived.
Employees are working.
Drugs are being made.
Only KAZUKIN's shares were sent off without a word.
The company was rebuilt.
The shareholder was forced out.
What a one-sided division of roles.
Scarier than the price falling
In stock investing, there are things scarier than the price falling.
The company's credibility collapses, its finances deteriorate, and the standing of existing shareholders vanishes entirely.
With an unrealized loss, there is still hope.
If it is pickled, you can let it sleep in the back of the fridge.
But delisting is another matter.
It is not pickled; it is like the whole fridge was hauled away past its expiry date.
Actually, there was a time it doubled
Not to defend Nichi-Iko, but there was actually a time when it doubled from my purchase price.
Yes, there was a chance.
Using long-term holding as cover, I had no exit strategy.
It was a rust of my own making.
A heavy lesson from the first stock I ever bought
Nichi-Iko taught KAZUKIN something important.
Long-term investing does not mean holding no matter what happens.
It includes running properly when it is time to run.
What a heavy lesson to receive from the first stock I ever bought.
I learned a lot.
The tuition was not at generic prices, though...
もう怒る気にもなれないね…
KAZUKIN Rating
- 😇 One-sidedness of “company rebuilt, shareholder forced out” — ★★★★★
- 📛 Forced exit by delisting — ★★★★★
- 💸 Regret over missing the time it doubled — ★★★★☆
- 🎓 Lesson about exit strategy — ★★★★★
- 😌 Resignation of not even being able to get angry — ★★★★☆
This article is KAZUKIN's personal opinion and record. Share prices, earnings and holdings mentioned here are as of the posting date and may have changed since. It is not a recommendation to buy or sell any particular stock, and it does not guarantee future profits. Please make your own investment decisions. All trademarks belong to their respective owners.