TLDR? Catalysts in value investing play a big role in your returns over time. Some catalysts are a sign of continued strength in the firm, others may indicate a signal to get out. How we determine which is the case on the firms we buy is explored in this article.

Hey all, I hope you enjoyed our article last week on the herd mentality and why individuals have a tendency to buy high and sell low. I hope that article helps investors to identity some of the traps that are inherently present in our psychology. And therefore, gives some ideas as to what investors should be watching out for instead.

Today, as a special case study article, I’m going to talk about a company on which I made 30% on. (Note that I’m bringing this up as a case study not because I want you to rush out and buy the stock. Instead, what I want this case study to act as is to behave as