How Could It Fail?

I was working for a company that provided raw materials to a company in the hydrogen battery business. It had big backers, such as Chrysler, and I was carried away with the hydrogen hype. I did no research, because it just had to be good - right? I mean, gas prices were rising, people were concerned about the environment … How could it fail? Easy. Management spent money faster than a Hummer burns gas, and there was a plethora of competitors, too. The biggest error in this mess: NO RESEARCH on my part. Still, I'm down only 95 percent on my investment - it's not bankrupt yet (check back in six months). Who knows? It may still come back.

- Chris Acton, Salt Lake City

The Fool Responds: Be careful. You don't sound like you have much confidence in the company.

If so, then you should consider putting your remaining dollars in stocks in which you do believe. And of course, next time do more research. Determine the firm's competitive position and financial health, to start.

Do you have an embarrassing lesson learned the hard way? Boil it down to 100 words (or less) and send it to The Motley Fool c/o My Dumbest Investment. Got one that worked? Submit to My Smartest Investment. If we print yours, you'll win a Fool's cap!