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Welcome everyone. 
Thank you for joining. 

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This episode is going to be a 
fun one, because we're going to 

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be looking at my worst 
investment ever. 

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That's right, where I've lost 
the absolute most amount of 

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money in the stock market. 
I'll be revealing it here and 

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kind of explaining what went 
wrong with it and I'm going to 

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make it more interesting than 
that. 

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You see the two black boxes 
here? 

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This is hiding. 
What is not only my worst 

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investment by three, worst 
Investments ever and how much 

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money I lost on each one of them
and then we'll be comparing and 

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contrasting that against My 3 
best investments ever and how 

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much money I made on those. 
So you're going to see each of 

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them. 
The absolute worst decisions 

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I've made in investing and the 
best decisions I've made and 

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we'll go over all of it in this 
episode will also, of course be 

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going over the growth portfolio,
which is the story fund and 

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comparing this against the S&P 
500. 

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So as always, we have a lot to 
jump into. 

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Let's go ahead and get started. 
The first thing you need to know

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with me is that I have two 
YouTube channels. 

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One of them that you're watching
right now is Joseph Carlson 

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after hours. 
Well, I have another YouTube 

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channel. 
Just called Joseph Carlson, just

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my name. 
And on that one, I actually 

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track a different portfolio 
called the passive income 

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account, and they have different
goals. 

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The story fund, which I track on
this channel. 

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This goal is just to 
outperformed the S&P 500 and do 

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that by investing in highly 
aggressive growth. 

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Centered companies that have 
huge total, addressable markets,

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great brand value, a products 
that are in secular grow Trends,

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so on and so forth. 
So the goal is simply to beat 

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spy and to do what soundly Over 
a five-year time Horizon. 

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Right now, I'm not beating spy. 
I'll just be transparent with 

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that. 
It's been a struggle so far, but

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I'll go into that more in just a
minute. 

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The goal at the passive income 
account is different. 

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I'm not quite as aggressive with
this portfolio. 

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I invest in high-quality 
dividend-paying companies that 

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have a lot of cash flow. 
Some cases, they're more 

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matured. 
They have less growth ahead of 

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them but they continually 
generate free cash flow. 

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They do Buy Backs, they pay 
dividends and overall it's just 

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a steady compounding machine. 
This portfolio I think is more 

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Hannibal and consistent and I 
think it's easier to manage. 

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In fact, I play this one a lot 
more conservatively. 

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I don't take quite as big risks 
in my opinion, and this one has 

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actually performed better than 
the story fund. 

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The story fun where I've been 
very aggressive and invested in 

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a lot of fast, growing companies
that are at higher multiples. 

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In some cases has performed 
worse overall and I'm actually 

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in the red overall on this one. 
So those are the two portfolios 

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and I tracked them on two 
different channels. 

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Again the story funded what the 
after-hours channel, the passive

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income portfolios with Joseph 
Carlson channel. 

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So you can follow each of them 
transparently week by week. 

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But my point in mentioning that 
is in this video, I want to show

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you the best and worst of each 
of these portfolios. 

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What are my three best 
investments? 

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And what am I three worst 
Investments? 

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Let's go ahead and start off 
with my three worst Investments 

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and funny enough. 
Each of my worst Investments are

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in the story fund. 
None of them are in the passive 

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income portfolio. 
In fact, in the passive income 

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portfolio, Haven't lost money, 
on many companies. 

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It's been very minimal losses. 
Most of my losses come from the 

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story fund. 
So let's go ahead and get 

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started with number one, we have
Netflix at a staggering eight 

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thousand four hundred dollars in
losses. 

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So let's go ahead and take a 
look at number 1, my worst 

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investment ever, which is 
Netflix and it's in the story 

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Fund. 
In fact, again, all three of my 

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worst Investments are in this 
portfolio. 

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It's been a very tough ride so 
far. 

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Netflix is one of my favorite 
companies. 

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It's one of My biggest 
convictions, I'm still very 

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bullish on the company overall, 
but I have made a mistake and 

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buying this company at a higher 
price, without a huge margin of 

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safety and their growth rapidly 
decelerate it which spurred a 

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huge sell-off in the stock. 
So, when I was buying this 

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company, I didn't think I was 
overpaying for it. 

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Actually thought that I was 
buying it, at decent value. 

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That's the reason that I was 
purchasing it, but obviously, 

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the market prove me wrong soon. 
After I was buying it, the 

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market, sold it off, and I'm 
currently down over In dollars. 

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So Netflix has had a really 
tough 2022 so far they started 

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off by rapidly decelerate in 
their growth expectations. 

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The street Wall Street expected 
around 5 million subscriber 

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gains for q1 and Netflix said 
nah it's going to be more like 2

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million so a lot lower than the 
expectations of Wall Street. 

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And then with the Oscars last 
night, Netflix didn't win, best 

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picture, they had a chance of 
winning best picture, but Apple 

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came in Apple's a pretty good 
company. 

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Everything they do. 
Do and they came in with their 

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streaming service out of left 
Phil just a couple years ago and

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they took best picture for a 
movie before Netflix ever has. 

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This is incredible. 
Apple came out of nowhere with 

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Apple TV, plus something that 
like five people are probably 

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watching right now, but apples 
actually starting to come out 

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with good stuff, they're 
winning, best picture at the 

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Oscars and this is an award that
Netflix has never won. 

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So, this is just not been a good
year for Netflix, and I expect 

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the troubles to continue on and 
Netflix re accelerates their 

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growth unless they can show that
they're still a Growth Company. 

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They're still growing their 
total addressable Market. 

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They're gaining subscribers and 
Latin America and an India and 

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so on and so forth. 
But right now, this company has 

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been a struggle and I expect to 
be in the red unless we see some

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margin Improvement, unless we 
see some free cash flow growth 

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unless we see subscriber gains 
Beyond expectations, some of 

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that stuff has to be improved. 
But as it stands right now, 

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Netflix is my number one big. 
This loser, I'm down over $1000 

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now. 
Moving on, in number two we have

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Ali Baba. 
Add a four thousand dollar loss.

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That's what I'm at right now. 
Again, Ali Baba's another one in

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the story fund and I have seven 
thousand dollars in value and 

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I'm down for thousand dollars 
some down over 50% on this 

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holding. 
I think it's been one of the 

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worst scenarios ever where I 
bought into the company and just

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immediately it fell 50 percent. 
And that's a situation with a 

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lot of people. 
Because Ali Baba went down from 

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a That was quite High just 
recently like a year ago and it 

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felt even more to the point 
where it was considered pretty 

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good value. 
Even factoring in like China 

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risks in the government, and the
potential for delisting is 

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seemed like it was trading very 
cheap, then it just fell more, 

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and more, and more, and more 
going from a price of, like, 

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$300 w low $100. 
So, lots of investors have 

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jumped in at different times and
most of them have been hurt by 

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Ali. 
Baba, there's not a lot of 

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people that are in the green. 
With this company but I knew the

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risks. 
I knew that China is 

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unpredictable. 
I knew a lot of people are 

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uneasy investing there but I 
went ahead and invested in Ali 

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Baba. 
Anyway on the calculated 

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assessment, the calculated risk 
that Ali Baba would not be hurt 

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too much by the Chinese 
government because they would 

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not have the incentive of 
hurting, one of their best 

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companies. 
And I also made the risk 

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assessment, that's just kind of 
a guess that the Chinese 

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government will not want to 
sever relationships with the us 

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because it's to economically 
beneficial. 

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We already have so many 
businesses doing business with 

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China. 
We have Tesla in there and 

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Disney and apple and Coca-Cola, 
and so on, and so forth. 

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So, I thought that there's a 
decent chance that those 

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concerns are overblown. 
Obviously, I was probably 

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mistaken on that Ali Baba. 
Continue to fall, I lost some 

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money on it. 
And now, I am still a holder of 

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the stock. 
So I'm going to give this one 

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time. 
We'll see what happens. 

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But so far. 
This is my second biggest loser.

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Now, moving on to number three. 
My third worst. 

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Moment ever is Spotify, which 
I'm currently down, just like 

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Ali, Baba, four thousand dollars
roughly speaking. 

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Now, spotify's a company that 
has a lot of challenges right 

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now. 
They had the Joe Rogan 

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controversy, they have the 
battle with big Tech and all the

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streaming services that they're 
coming out with and pushing so 

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that it's not the perfect story,
but the company has a great 

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product. 
It continues to grow fast, 

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they're growing their 
membership, very fast as well. 

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And I'm still bullish on the 
company overall, I bought it 

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during a time where SAS 
Multiples in general, were much 

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higher. 
Spotify was trading around a 

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fifty billion dollar market cap,
and right now it's around a 

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twenty eight billion dollar 
market cap, so it's come down a 

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lot. 
But again, I remain bullish on 

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this company overall. 
And I think over the next year 

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or two, I have a chance of 
erasing, some of these losses. 

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Now, the total hair is sixteen 
thousand four hundred dollars in

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losses between my top three 
worst Investments. 

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So that's a huge number sixteen,
thousand four hundred dollars, 

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I'd like to have that back but 
keep in mind every one of these 

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companies. 
He's, I still hold all the 

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original shares that I 
originally purchased. 

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I haven't sold out of them, so, 
I have not realized any of this 

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loss. 
It's just unrealised at this 

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point and I think over the next 
three years, I have a decent 

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chance of making a lot of it 
back. 

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So we'll see how this goes in 
the future. 

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Now, let's go ahead and 
transition over to my best 

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investments ever. 
These are the best stock picks 

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that I've ever done. 
We have apple this one. 

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I'm up twenty three thousand 
five hundred dollars. 

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Now, like I mentioned apples in 
my other portfolio called the 

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passive income. 
Where I have a dividend growth 

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strategy and Apple has been one 
of the central Holdings in this 

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portfolio right here. 
You can see I have twenty three 

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thousand five hundred fifty 
dollars in gains and the total 

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position size is 59,000. 
So a little under half of the 

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position is gains, and this one,
I still remain bullish on 

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Apple's trading at a kind of 
high twenties PE ratio so it's a

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little bit pricier right now. 
I'm not pouring money into this 

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holding or anything. 
When I look at their future, 

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their products are coming out 
with their Market. 

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Position, their balance sheet 
and everything. 

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I still think the apple offers, 
attractive value. 

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So I continue to hold it with 
apple. 

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I'm up 23,500, the next one is 
Costco. 

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I am up over ten thousand 
dollars right now. 

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In Costco Costco is another 
company that I consider to be 

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one of the best companies in the
world that's in my passive 

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income portfolio. 
There it is right there up ten 

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thousand five hundred dollars 
and the total position size is 

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40,000 now this was not a deep 
value by in fact I purchase 

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Costco with the Relatively High 
P/E ratio because I believe in 

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the future of this company so 
much. 

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I think that it is one of the 
most promising stories in the 

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entire Equity markets. 
I think this company will 

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consolidate retail, it'll grow 
throughout China. 

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It'll grow everywhere in the 
world. 

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Because everywhere I see this 
company, I see people loving the

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business model, loving the 
shopping experience, loving how 

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good they treat their employees 
and their customers and the 

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return policy. 
And I just think it's incredibly

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difficult to compete with and so
far investors want to own this. 

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This company they're willing to 
pay a premium for it and even 

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though I have ten thousand five 
hundred dollars in gains right 

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now I don't plan on selling it 
and locking it in. 

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I plan on holding this company 
for the next ten years because I

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think the gains will be much 
higher over that time period. 

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So we have CostCo with over 
10,000 dollars in gains. 

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And number two, and then a 
number three, it's very close 

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between Microsoft and JP Morgan,
but JP Morgan came in third 

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place with over 6,000 dollars 
and gains in this company. 

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JP Morgan is another company in 
the passive income portfolio. 

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Here is what it looks like. 
Currently six thousand one 

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hundred and seventy two dollars 
in gains. 

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And it is a 20 thousand nine 
hundred dollar position having 

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said that, this is a company 
that I do like to kind of buy 

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and sell based off the 
valuation. 

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The Price to Book. 
Value gets up to a 2. 

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I end up selling a little bit 
and taking some gains, if The 

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Price to Book value goes down to
like a 1.5 that's typically when

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I buy it because that signifies 
that it's undervalued based on 

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its history. 
So JP Morgan. 

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Making up third place with six 
thousand dollars in gains. 

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That is a I love 39 thousand 
eight hundred dollars in gains. 

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So with my top three, biggest 
losers, the absolute biggest 

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mistakes I've made in investing,
I'm so far down, sixteen 

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thousand four hundred dollars 
and my top three winners are up 

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39 thousand eight hundred 
dollars that Nets out to twenty 

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three thousand four hundred 
dollars in gains between these 

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six companies. 
And that's I think an important 

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way to look at investing, 
consider the fact that just 

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Apple alone, just my best pick 
makes up for my top three 

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biggest loss. 
Zephyr, having one right pick 

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and investing can make up for a 
lot of mistakes, and I think 

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that's the way that you have to 
view this, whenever I make an 

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investment into any stock. 
I want that to be a winner. 

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I want it to make me a lot of 
money. 

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And so I do a lot of due 
diligence, a lot of research. 

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I try to buy very good 
companies, that attractive 

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values and I want to have a 100%
hit rate. 

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I want every single company. 
I invest in to make me a lot of 

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money. 
Unfortunately, that just can't 

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happen. 
That's not how investing works. 

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Nobody bats. 
A thousand. 

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Nobody has 100% of the 
Investments. 

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They make turn out like they 
expected. 

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Even Warren Buffett, even Bill 
Ackman, even Peter Lynch, all of

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them have losers in their 
portfolio. 

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Every one of these investors 
lost money on different 

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Investments. 
They all have this category of 

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their worst Investments. 
That doesn't look pretty if you 

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dive right into it, you know, 
that Warren Buffett, lost money 

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on the airlines he was invested 
in them and then sold them in 

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2020. 
Realizing a big loss and he's 

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lost money on retail 
Investments. 

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And It's a different Investments
Berkshire. 

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Has lost a lot of money in a lot
of different Investments but 

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they've made way more money in 
their gains there by an apple, 

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makes up for a huge amount of 
losses. 

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They're buying Coca-Cola makes 
up for a huge amount of losses. 

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They have a couple key companies
that really erase all the losses

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of their worst Investments, you 
can also look at Bill Ackman, he

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lost money on JC Penney, he lost
money on Valiant he lost money 

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on Herbalife, he lost money on a
lot of different Investments, 

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but overall his big Winners have
made up for his losses and you 

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can say the same thing about any
single investor. 

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So when you're looking at your 
portfolio and you're looking at 

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some of the investment mistakes 
you have made, especially 

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recently, with how difficult 
it's been, don't lose track of 

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the fact that everyone has these
losses, most people don't like 

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to show them publicly because 
it's kind of embarrassing. 

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You want to only show this 
category of where you're making 

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all the money but I think it's 
good to put this in perspective.

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We have our worst Investments, 
we have our best investments, 

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and if you're doing intelligent 
and Testing we're making 

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calculated risks and looking at 
valuation and investing in high 

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quality companies. 
Your best investments will make 

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up for way more than your 
losses. 

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And overall you'll have a huge 
net gain so even though as an 

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investor, my goal might be to 
have every investment turn out 

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00:14:16,000 --> 00:14:19,800
great and make lots of money. 
I know realistically that, 

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that's not going to happen. 
I'm going to have my set of 

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00:14:22,000 --> 00:14:25,300
losers just as I have my set of 
winners and that's the way that 

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investing has worked throughout 
all of history. 

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That's the way that it's always 
been in my My case, my goal is 

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to have my winners make a lot 
more money than my losers, so 

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00:14:34,200 --> 00:14:36,400
that they overcompensate for the
losses. 

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That's what I'm trying to do. 
So even though I try to bat a 

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thousand, I try to hit home runs
on everything. 

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I think the ones that I do hit a
home run on the great 

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00:14:44,100 --> 00:14:47,700
investments will over compensate
for the losses just like apple 

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00:14:47,700 --> 00:14:49,400
did for my three worst 
companies. 

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The risk reward for stocks is 
just amazing. 

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00:14:52,100 --> 00:14:54,600
You can only lose your invested 
Capital. 

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00:14:54,800 --> 00:14:57,600
That's all you stand to lose 
when you invest in a stock. 

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So if I invest 10,000 dollars 
into a Company and heaven 

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00:15:00,700 --> 00:15:02,400
forbid. 
I really pick a bad company and 

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it goes bankrupt. 
Something that's never happened 

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00:15:04,700 --> 00:15:06,800
to me. 
I would lose ten thousand 

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00:15:06,800 --> 00:15:10,300
dollars and I'd be out my 
initial investment that would be

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00:15:10,400 --> 00:15:12,800
terrible, right? 
To lose ten thousand dollars but

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00:15:12,800 --> 00:15:15,600
the risk/reward is so good. 
If you invest in another company

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00:15:15,600 --> 00:15:18,400
that does really well. 
It can go up 100 percent to 

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00:15:18,400 --> 00:15:21,000
twenty thousand. 
So you can double your money or 

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00:15:21,000 --> 00:15:25,400
it can go up 300% or 400%, or 
five hundred percent a lot of 

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00:15:25,400 --> 00:15:28,600
these companies like Costco and 
JP Morgan and apple have 

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00:15:28,600 --> 00:15:30,700
compounded, huh? 
Hundreds and hundreds of 

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00:15:30,700 --> 00:15:33,600
percent. 
So you stand to make far more 

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00:15:33,600 --> 00:15:36,800
with good compounding companies,
then you stand to lose with 

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00:15:36,800 --> 00:15:40,200
making one bad pick. 
The risk-reward is just amazing.

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And that's part of the reason 
that I love the stock market. 

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Anyways, that's my video for 
today. 

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I hope you enjoyed it and I'll 
see you in the next one.