Burned by Volatility

My dumbest investment was in Sierra Wireless, which fell from near $50 per share to the mid-teens, costing me a lot of money. — B.B., online

The Fool Responds: When investing, it’s important to remember that not every investment will play out as you expect or hope. Even the best investors regret some of their moves.

It’s also critical to understand that no stock will move up in a straight line. There’s always some volatility, and it can be especially so with young companies and ones in fastchanging industries. As long as you maintain long-term faith in a company, it’s often best to just hang on.

Sierra Wireless, in the business of making wireless chips and modules that are used in wearable devices, connected vehicles, smart cities and more, topped $30 per share about nine months after you wrote us, but it was recently in the teens again, though seemingly heading up.

It’s focused on the promising Internet of Things market, which enables items such as cars, health care devices and even home appliances to communicate using Bluetooth and cellular signals.

We can’t know how Sierra Wireless will perform in the future, but there’s plenty to be hopeful about. Its shares surged 19 percent recently, when it posted strong second-quarter results, featuring revenue growing 16 percent year over year and bullish projections from management. (The Motley Fool owns shares of and has recommended Sierra Wireless.)