Thanks for all the applause. I dont know how much I deserve it.
If there is a case where things dont work out as expected especially on the front of the company reporting numbers as expected or where some other expected triggers dont play out then after the stipulated time, it makes sense to accept that we made a mistake in our investment thesis and exit the position and move on without any recriminations.
And it has often happened that after waiting a long time for the tide to turn for the company and still no returns, once I have exited a company, the things start to improve and even stock price starts to rise. But one has to take it as a part of the game and accept the misses with the hits. As long as the hits provide outsized returns as compared to the quantum of losses in the misses its okay
And one has always to consider the portfolio approach. There will always be a couple of stocks in a portfolio of 8-12 stocks which will not move along expected lines sometimes inspite of the expected fundamentals results coming through, But if the whole PF is performing well then that should be okay. Many a times some investors get caught up with a particular stock in PF and keep worrying about it. So there the PF approach should be helpful.
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