Investment Review day 42 of 50: StitchFix $SFIX (sold)
StitchFix is an online personal styling service. It uses recommendation algorithms and data science to deliver ‘fixes’ to customers – boxes of personalised clothing items based on size, budget and style.
I liked the idea of having a virtual personal shopper, a convenience factor that would seem to appeal to a wide demographic of users. I bought stock in 2018, and was excited when they launched in the UK in 2019 and looked forward to becoming a customer as well as a shareholder.
Unfortunately, the shopping experience didn’t live up to the promise, and the claims of data science expertise could not be seen in either the recommendation algorithm or the way customer services was run. I posted some constructive feedback, closed my account, and sold my stock.
It’s incredibly powerful to be a customer of the companies you invest in, there’s no better way to understand a business than to buy its products or services. And if you can’t become a customer yourself, perhaps a friend or family member can, and can provide unbiased feedback.
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I’m putting my holdings under the microscope. Over the next 50 days I’ll break down my whole investment portfolio. Wins, losses, and the ‘why’ behind it all. And on day 50 I’m going to share my full portfolio so you can see how my strategies played out in the real world over the last twenty years and what we can all learn together. Follow along for the journey! #StockAnalysis #50daychallenge
