How I dodged a 90% drop in this stock's price

In 2019, I was looking for a new stock to buy. I was honestly desperate to find a new investment opportunity becuase I had thousands of dollars in capital and no where to deploy it. Everyday that I wasn't invested in the market was a day that I was missing out on potential market gains.

At the same time, someone recommended me to invest in Beyond Meat. The truth is that it seemed like an interesting investment opportunity. it was one of the largest plant-based meat companies in all of America. It seemed to be the next leading meat company in America.

I bought some shares at $150.

It sounded like a wonderful investment opportunity.

But there was one red flag with the investment: everybody was chasing after the stock. It was perhaps the most hyped up stock on all of Wall Street.

I knew that it's almost impossible to make money in a hyped-up stock. When the market expects a company to perform extraordinarily well, it's almost impossible for management to beat those lofty expectations, making it impossible for the stock to outperform the market.

I knew that the company was going to struggle to outperform the market since it was so hyped up.

So I decided to dump my shares at the same price that I had paid for them.

It turned out to be one of my best sell decision ever. The stock went on to drop from $150 per share to merely $2 per share in the following years. I had dodged a 99% drop - and it was all thanks to one investment principle: never buy a stock if it's hard for management to beat expectations.