My Dumbest Investment

I lost my patootie in the laser eye-surgery sector. One company I invested in basically went belly up. I had other investments in the industry, too. I made the huge mistake of thinking that since this technology was so successful, that the stocks of the companies involved had nowhere to go but up. Little did I know that the competition in the industry would devalue my investments to nothing.

- B.B., online

The Fool Responds: That's a critical lesson: A great technology isn't enough to ensure riches. The Betamax technology, though deemed superior by many to VHS, wasn't the winner. In high-definition technology, Toshiba's HD DVD and Sony's Bluray battled it out, with Sony looking like the victor now. Some companies, though they have a winning technology, fail because they run out of money or they're bested by competitors. Some make strategic errors, such as licensing or not licensing their technology to others. You need to study the big picture and see which company or companies are best positioned to succeed, and that may not be evident for some years.

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! Last week's trivia answer