Since my me culpa post regarding the investment in RIM, I have sold off my entire position.
In hindsight, this could have been a very profitable investment for me. But it didn't turn out to be. Over all, this position was sold at a loss.
The big thing that stopped me to buy more during the sharp price decline of 2012 was my lack of deep conviction regarding this business-- leading me to limit the size of this position. In my heart I did, and still believe that RIM/Blackberry is not going to survive in the long run. I have no reason behind this, but it is a feeling.
The core mistake I made was that I was thinking of RIM position in an emotional way, rather than rationally. This connects with the mistake I outlined in my last post-- the mistake of not focusing on the balance sheet. Which further exacerbated the problem because the margin of safety I demanded was based on an analysis of cash flow rather than the balance sheet.
I have learned my lessons from this, and have survived to live another day. In spite of the disaster that was RIM, the portfolio had a very favourable 2012. I can only hope that future years continue to offer such returns.
Full Disclosure: No position in Blackberry / RIM.
