Peter Ricchiuti – Don’t Fall in Love With a Stock

<p><strong>BIO: </strong>Peter Ricchiuti is a graduate of Babson College and began his career with the investment firm Kidder Peabody in Boston. He later managed Louisiana’s $3 billion investment portfolio while serving as the assistant state treasurer.</p><p><strong>STORY:</strong> Peter made the mistake of falling in love with a particular stock and hyped it to his clients. The company had no moat and couldn’t stand the competition. Peter’s reputation was severely affected after the stock price fell significantly.</p><p><strong>LEARNING:</strong> Don’t fall in love with a stock. Diversification is key.</p><p>&nbsp;</p><blockquote class="ql-align-center"><strong>“If you meet a money manager and they tell you they’ve never had any big losers, just run because losses are part of the game.”</strong></blockquote><blockquote class="ql-align-center">Peter Ricchiuti</blockquote><p>&nbsp;</p><h2>Guest profile</h2><p><a href="https://www.peterricchiuti.com/" rel="noopener noreferrer" target="_blank"><strong>Peter Ricchiuti</strong></a> is a graduate of Babson College and began his career with the investment firm Kidder Peabody in Boston. He later managed Louisiana’s $3 billion investment portfolio while serving as the assistant state treasurer.</p><p>From Memphis to Mars (PA), Peter has addressed more than 1,200 groups in 47 states and several countries. He has been featured in BARRON’S, Kiplinger’s, The New York Times and The Wall Street Journal. He also hosts a popular weekly business show on National Public Radio in New Orleans called “<a href="https://itsneworleans.com/show/out-to-lunch/" rel="noopener noreferrer" target="_blank">Out To Lunch</a>.”</p><h2>Worst investment ever</h2><p>Peter got interested in a new company making soft soap that would replace the bar soap, which it did. The stock was trading at around $19 a share, and Peter just fell in love with it. He got many blatant signals that this would not work, but he ignored them.</p><p>At first, the stock performed very well. However, the company had no moat.