I was discussing with 2 person I shared investing ideas with that, your view of a business changed a lot when it look really good and when it doesn’t look really good.
A lot of it is psychological. I realize for existing stocks, those stocks that are performing not so well you will tend to find reasons to sell it. This is confirmation bias. You will compartmentalize the pain. And you will find it difficult to add to the position.
By right, you should be adding on at lower prices isn’t it? Since it has a ‘value proposition’. You are suppose to buy when they look ugly.
You can buy 2 kinds of value propositions. The first is the misunderstood growth. People in general think it can only grow like 3-5% per year when after your deep research, they realize with a degree of confidence that the business can ......