Hi Satya,
Let me share my views with you on this. Investing needs to be business like. So before investing we need to know why we are investing in any given company. We usually think that since markets are not efficient every situation in front of us appears to be a bargain in some sense(availability bias). However as Howard Marks says," The market is efficient most of the time", so whatever we are looking at most ration people out there are looking at that too. To beat that market we need to know what others don't know and in this process we need to dig deep and deep.
Knowing a situation in detail can be expressed in a small story. This story is our understanding of the company and needs to be attacked for all possible criticism.
Now once we develop a story, we need to know what is the trigger to unlock the value and what are the triggers for destroying the value.
If we feel the that the stock price is going below its value due to irrational reasons, something like Greece than we should not trigger stop loss. However if the original story is disturbed or exposed to a -ve black swan, we should cut out losses. In lynch terminology "stop watering the weeds"
Regards,
Sunny
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