All eggs in one basket

The time I put all my money into a single stock

Anshil Bhansali, Jan 7, 2021

The past month for me has been extremely exciting yet nerve wrecking. After placing my $80k bet on peloton, I found another great opportunity with a newly IPO'd company, and I was extremely bullish about this one.

Enter C3 AI . This is an enterprise AI company that deploys solution for large scale enterprises. Think of it like Palantir but its customers are large enterprises as opposed to the government.

One of the main reasons I was bullish on this one is because the founder, Thomas Siebel , essentially created the Computer Science building (Siebel Center) at my university, University of Illinois Urbana Champaign. Along with other reasons such as his great track record in the industry.

December 9th: C3 IPO's at an initial price of $42, but hits the public debut at around 90$. Yes, it doubled, similar to Snowflake. YEs, it might be considered overvalued. I still jumped in with a decent stake. At the time, I had around 70-80K riding on Peloton, and I put in $30k in C3, at an average share price of 100$. I had about $40k remaining lying in cash in my robinhood account as a safety net in case it fell more.

Over the next 2 days, it jumped to $130! Luckily, with my mindset of always cashing in profits, I sold a third of my portion in C3. To my benefit, the next day C3 fell back to $100. And you know what I did, I bought more. I bought enough back to my same amount, hold $30k in C3.

December 15th: Now, over the next week, C3's share price rallied up to $170, from $100. That was huge. I was ecstatic. My portfolio was through the roof. I become a little greedy, and did not sell, thinking it would go up more. On December 22nd it reached a high of $170.

December 23rd: It started its correction, and fell to $160s. Thats when I decided to sell some and realize some profit. I sold about $20k worth, and decided to hold the remaining, as I thought it would bounce back up. Boy was I wrong. Until Jan 6th 2021, it crashed like there was no bottom. It corrected all the way down to $113. That was probably the most anxious time of my life. Because, as it fell, I kept buying more. While it was falling, around the mid 120s, I just relentlessly kept buying. I even cashed out my peloton stake (with a 45% return), and bought more C3.

The reason it fell is because analysts started coverage on the stock and called it heavily overvalued, along with the general correction in the tech sector. Noted.

January 6th: C3 was trading at $113. The plunge was about a 40% drop from its high. Throughout its fall, I kept buying at different price points. I HAD ENDED UP PUTTING ALL OF MY MONEY INTO C3!! I had $175k riding on C3 with an average cost of $125. I was holding onto 1400 shares! This was the biggest bet of my life ever. While it was in the $113-$115 range, I was down 10% on my C3 investment, that is $15k, a lot of money. BUT, I truly believed in the company, followed my gut and held tightly. I knew a reversal would come at some point but who knows when.

January 7th (today): C3 jumps in 20% to $135 and is currently trading at that level. Probably one of the best things to wake up to. My portfolio is back to where it was, I've made a cool $28k today, and I have a feeling it will go up higher. I have sold 400 out of the 1400 shares I owned, because again, its always good to realize some profits after a rally, and because I had no spare cash in case another correction happens. As it continues to climb, I will sell off little portions of it to build a nice return around this trade.

Why am I telling you this? I wanted to highlight a few points in this journey.

1) If you truly believe in a company, and are reasonably confident after doing your due diligence, BET HEAVY. Dont be afraid of one way bets.

2) If your bet is failing and the stock is falling, DO NOT panic sell.

3) Have patience, follow your gut.

4) Realize profits when you can, don't get too greedy. Don't worry if you sell too early, there are always opportunities out there.

I hope this journey of mine brought some insight to you. Lets see where C3 takes me now. Happy trading! :)