Buying BlackBerry was the worst call I ever made, says one fund manager.
Greg Newman, Senior Wealth Advisor, Associate Portfolio Manager and Director, The Newman Group, ScotiaMcLeod was on BNN’s Market Call Tonight and talked about his best and worst calls ever.
Newman says BlackBerry, then known as Research in Motion, was a top performer in client portfolios from 2004 until 2011. But then, he says, U.S. analysts turned negative while many Canadian analysts were defending the company, creating an environment of confusion.
Newman says he has tried to pare back his holding, but still owns some of the stock. He thinks holding the remainder may now be the best move, considering the stock’s recent lows.
“The outcome is not completely certain,” says Newman. “At that little amount of capital, maybe it’s not bad to hold it and wait and see.”
Newman says his mistake on BlackBerry came from focusing on the successes the company had in the past.
“It was just that how counter intuitive it would be that such a great device that was brought to the world by these ingenious folks, and had executed so flawlessly for so long,” he said. “Who would have believed that their business would turn around so poorly in such a short period of time, when the demand for smartphones is so incredible, globally? It just goes to show you what can happen from any one stock at any one time, and it’s a humbling experience.”
Newman’s experience with Canada has not been all bad though. His best pick ever? Vancouver-based Lululemon, which has been a ten-bagger in the same time period that BlackBerry has collapsed.