A Big Drop

My dumbest investment has been in Sierra Wireless, which has lost about three-quarters of its value over the last five years. — J.B., online

The Fool Responds: Sierra Wireless is involved in the “Internet of Things” (IoT) realm, which specializes in technology that facilitates communication with (and between) objects. (For example, your home security system might tell your heater that you’ve left the house so it can turn the heat down; soil sensors might alert farmers about irrigation needs.)

Sierra Wireless is facing sluggish IoT chip sales, falling chip prices and unfavorable macroeconomic conditions; these headwinds have slowed its growth and sent many investors running for the exit. Its future isn’t certain at this point, but bulls are hopeful that it will turn itself around, with a greater focus on software; recurring revenue from service contracts; and the bundling of hardware, connectivity services and cloud-based management.

It wasn’t necessarily dumb to have invested in Sierra Wireless; not every investment will make you money. You just have to think about what the future holds for the company. If you expect recovery followed by growth, hang in there. But if you’ve lost faith, sell and move those remaining dollars into a stock in which you have much more confidence. Always have your money invested in your most promising ideas. (The Motley Fool has recommended and owns shares of Sierra Wireless.)