This was what someone told me after I joked that I had taken profit from a position way too early and that the stock price doubled after I sold.

Aside from the fact that I was quite taken aback when this was supposed to be a light hearted conversation and he went all “serious mode” on me, his point hit the nail on the head.

There are times when I entered a position at a great price but left too much on the table. These are led by poor judgement, impatience and… yes, a lack of conviction on my investment thesis.

Conviction is about the level of sureness you feel. For myself, high conviction usually happens when I did my research and the numbers makes sense to me that it is a great stock to own, be it due to cheapness or great business fundamentals.

This is also part of the reason why I started writing down my case studies.