NXU adventures 15/14/13/12/

Eight months ago Sandy Munro visited NXU’s installations and gave them a rave review. I was so impressed I bough some shares (June 29) which tanked royally. I wondered if Sandy was just getting paid for the promotion (conspiracy theories?). Since then the praise in the video has been watered down or edited out.

Surprise! The stock is up 100% after hours. On what news?

Maybe Sandy was not off the mark but just a bit early…

The (edited?) praise video

The Captain

PS: Just this week I was thinking maybe I should just take the loss. Thinking about how markets work, I’m thinking one should never sell. Of course some stocks will die but, will the replacement stock do any better?

There is an important bit of mathematics that prevents one from going broke ASAP, the Kelly Criterion

Warren Buffett (or was it Charlie Munger?) claimed that diversification is protection against ignorance. If we can’t tell the future we are ignorant about the future. The Kelly Criterion protects us from our ignorance!

Buffett and Munger invest mostly in traditional stocks but my preference is growth/technology stocks which often drop 50% or more but the good ones more than make up for it, Apple, Amazon, etc. If you buy just a few shares (limited by the Kelly Criterion) the long term results should be just fine. Backtesting should be interesting but one needs the data about the failures and they tend to disappear from the records (survivorship bias).


That has been my philosophy for some 40 years of investing.