I usually look at new positions super Investors take and see what % of their portfolio it is.
NOTE : “High Conviction bets” as Mr. Pabrai says, can be a double edged sword.
I whet them according to what I understand and what I can relate to knowing what I know.
Some of the ideas just get dropped because I don’t see why it makes sense, some get dropped because of time constraints.
Something I can understand is eventually my litmus test, not that I understand many industries well but yeh that’s how I do it.
Also, I’m happy to take smaller positions in things I don’t understand and learn along the way. If the stock is doing well and there are fundamentals to support it, I normally average up from there.
Subscribe To Our Free Newsletter |