# The Fire Phone Taught Me How to Lose Money (And Why I'm Still Buying TMDX)

Back in 2014, I sold my position because I hated Amazon's Fire Phone—at the time, that stock had already given me a 3x return. What happened next? I was right (the Fire Phone was indeed a garbage product), but I was completely wrong (Amazon later became a 14x bull stock).

The problem is not that Amazon has issues, but that I made a fatal mistake: to deny the long-term potential of a founder-led company based on short-term product failures. Bezos dared to experiment back then, which led to the rise of AWS, Whole Foods, and Prime.

This lesson is now applied—I am continuously increasing my position in TransMedics(TMDX). In August 2023, the company announced the acquisition of the airline Summit Aviation, and my first reaction was, "Oh no, the gross margin is going to be dragged down." The stock price immediately halved. But this time I didn’t sell; I chose to trust founder Waleed Hassanein.

Two years later: TMDX has increased threefold from its low point, sales have doubled, and 78% of organ transplants have been completed through its own air network. In the latest quarter: transplant revenue +32%, logistics revenue +35%, and net profit margin reached 17%.

My initial judgment on the impact of aviation on gross profit was partially correct, but I completely underestimated its contribution to cash flow and efficiency. The company's goal is to double the transplant volume from the current level to over 10,000, and also to enter the kidney transplant and international markets—there's an enormous potential.

Of course, new markets and new product lines always come with risks. But what I've learned is that instead of getting caught up in every trial and error of a founder-led company, it's better to give the management team time to validate the long-term vision. The lesson from the Fire Phone is worth remembering for a lifetime.