I have missed a few multibaggers in journey Waaree , Zen technologies as i was too biased on my idea of valuation . I am now trying to be flexible and add position where valuation could be higher ( perceived ) PE / P/B but buisness and scalability runway is higher .
I have other few bets i have taken in the process but not writing about all of them as they are small position and some have done better and some have not .
Reason i am.writing this post is because i got a portfolio to handle pretty early on when i wasnt prepared . Learning to sell your old winners ( i have trimmed or sold lot of my old holdings inherited ) and moved to new business. This helps to grow the portfolio better if done in a wise manner and can create huge wealth.
I always try to evaluate my risk reward when i buy a buisness .
I would say whats my downside whats my upside . If upside is huge downside is limited go for big allocatio . If downside is also 40% or more add decent position and then average up.
If its too risky bet take a started position and slowly evaluate.
I am still learning and my next learning implementation would be when i will be able to load up big position on business at initial stage when price and valuation are in lot of comfort .
Cheers to learning together and growing together. Have made some greats friends mentors in the process .
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