Yes. Maybe too well, at least for now. For reasons rooted in psychology.
So when do you actually sell?
Great essay, learnt a lot!
Very well explained. Keep them coming!
Superbly written. Thanks.
Great stuff...quick question: Does Assertion 2 then imply that one should equal weight the businesses in the portfolio ? How to think about portfolio weights if there isn't a reliable way to rank companies by conviction or prospective risk-reward
Great insights shared from a behavioural aspect of investing!
Very insightful. I would like to check on how does one decide on time to give for a holding, before deciding to look at alternatives?. The reason I ask is that, I have seen stock prices of some of my holdings stagnate in a zone for several years before a catalyst pushes the price out of the zone. I understand that building conviction and watching the business instead of the stock price movement helps us hold on if we see potential in the business. Now how much time would you give for stocks of such businesses to reflect their potential?, considering business quality is good, growth is in low double digits in a growing industry.
Also there is the opportunity cost of not getting the timing right and missing out on alternatives, how do you handle that?, do you test waters & incrementally build your position in the stock as your thesis plays out? or do you go all in based on your research?