In January, I bought stock in a semiconductor company called Xilinx. After the company released a poor earnings guidance, the stock got punished. Bucking the trend of an overall bull market among the semiconductors and technology stocks, Xilinx stock was hammered. I took a small bite of it.
Over the past weekend, I had time to dig through its financials more carefully. Upon closer inspection, I suffered from buyer’s remorse and quickly got rid of the stock. In this post, I will jot down my thought process to avoid making such a mistake in the future.
Company Background
Xilinx is a company that designs and sells a special semiconductor part called a Field Programmable Gate Array or FPGAs. FPGAs are chips that are somewhat like a CPU or GPU, but not quite. These chips are usually used in specialized computing applications where data throughput is very important. Therefore, it is...