Make It Stack

Make it Stack #23 My investment blunder with Beyond Meat!

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In this episode, I talk about my investment blunder - which was buying Beyond Meat shares.

Key summary:

  • In August 2020, I purchased £1000 worth of Beyond Meat Inc - a then trendy company in the plant-based meat industry which looked to be capitalising on the demographic shift in the Western World to a more environmental/ethical diet.   
  • Since investing, poor company management, industry headwinds and rising interest rates have caused the stock price to fall from $131/share (my entry point) to c.$8/share. I'm sitting on a paper loss of 93%. 
  • Whilst this has been a bitter pill to swallow, I have taken three stock picking lessons from this:
    1. Beware of confirmation bias 
    2. Have a clear exit strategy 
    3. Calculate a target price with discounted cashflow analysis and don’t overpay 
      • Whilst buying Beyond Meat was a large error, I’m glad that it’s happened early on in my career. This reduces the change of making similar errors in future with more meaningful sums of money. 

        • Link to discounted cashflow model video here.

        Want to get in contact with me? Use the following channels:

        Instagram: ⁠@_makeitstack⁠  TikTok: ⁠MakeItStack⁠  Website: ⁠https://caytonanalytics.com/⁠  Email: [email protected]

        Disclaimer: This podcast is for educational purposes only and should not be construed as financial advice. If you are unsure of making any investment decision, please contact your financial advisor.

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        Make It StackBy Will Waterhouse