Why I Sold Tucows

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By , August 4, 2014

It’s  hard post to write, but on Friday I sold most of my remaining shares of Tucows. Last year – before the reverse split I sold a little more than half, and just now I sold most of the rest.

I invested in Tucows back in 2005 or 2006  for reasons which were admittedly, more emotional than savvy. As I began to learn more about investing and in particular, drank the value investing Kool-Aid , I added considerably. Specifically in 2008 I realized that a conservative valuation of their aftermarket domain portfolio (a.k.a “Yummynames”, before Yummynames actually existed) was worth more than twice the actual market capitalization of the entire company. It was surprising to find such a textbook value investment so close to home, but after I got over that it was easy to pile in and buy more, and more, at an average cost of $0.65/share (or $2.60 post-reverse-split adjusted)  finally doubling down in 2012 at roughly $1/share (or $4 post-reverse-split).

Selling Tucows after being a shareholder for over a decade was hard. Canadian value investing guru Irwin Michaels expands on why “selling is hard” in his interview in “Stock Market Superstars: Secrets of Canada’s Top Stock Pickers” (cheesy title, good book): Read more »

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