Value Investing - Look4Leaders / FollowUrGut

Here is an article where I get to make a mental note about a stock I own, why I bought it and when I thought it was a good time to ring the register (sell some of my stocks).  Doing a quick search on my blog, gives me a quick peek into when I first took notice of Lululemon. I like to think of myself as a VALUE INVESTOR. Just like in life, I sleep better knowing I'm getting a deal on my bills, that new TV, and hopefully when I invest. Value investing can be tough because if you are a person that loves to follow the crowd then this investing style can make you nervous. I recently watched the movie Draft Day, and to quickly summarize the movie: The consensus #1 player did not get selected with the first draft pick and shortly thereafter the other teams began to panic and also decided to not draft this player and he remained available until the 7th pick.  So it made me think about the following:

1) Was he really the best player and team #7 got a huge bargain, while teams #1-6 got scared and made a huge mistake
OR
2) He was never the best player and everyone had really bad info, making him the consensus player

In short, these are the types of stocks I try to search for: "A potential number one draft pick that is falling in value". Lululemon was that out of favor company that caught my eye. I won't revisit everything here but my mental notes are to remember how I found out about the company and is there a legit reason for the fall from number 1.

First Found Out - Friends wearing the clothes, carrying the bags, Yoga craze, and me laughing at their high price tag ($100)
Fall From #1 - The company began a freefall after the CEO made disrespectful comments indicating that Yoga pants were not for women above a certain size. Then the next black eye came from a huge manufacturing mishap that caused the pants to be more see-through than women had bargained for.

The hardest thing then was not buying this amazing stock at full price ($70+) because they were the #1 pick...the favorite Yoga pants for many even with a little bad news. Then soon after, fear kicked in and I didn't want to buy the stock as it dropped under $45 a share. Right!?? I told myself this company was a huge mistake. Stop...I got myself to relax took a few deep breathes and tried to understand could they eventually overcome these things and remain a world class leader. I thought so and began to buy the stock from $37-42. This past few weeks it made sense to finally sell most of the shares after 1+ years because they have come full circle and I'd like to walk away and not be greedy.

I sold 75% of my stake and I'm on to the next hidden gem. #Value, #Patience, #Look4Leaders, #FollowUrGut