The distinction between tolerating normal volatility and ignoring deteriorating fundamentals stands out. A company specific sell rule, paired with a quarterly quality score, turns “conviction” into something testable instead of emotional. The point about ranking positions by original allocation is useful too.
It helps prevent automatic trimming of the businesses executing best while adding to weaker positions simply because their prices fell.
Always keep shinning and inspiring us, who has a keen interest in learning.
Thanks @Compounding Dividends
Much appreciated, Muhammad!
The distinction between tolerating normal volatility and ignoring deteriorating fundamentals stands out. A company specific sell rule, paired with a quarterly quality score, turns “conviction” into something testable instead of emotional. The point about ranking positions by original allocation is useful too.
It helps prevent automatic trimming of the businesses executing best while adding to weaker positions simply because their prices fell.
Shopify down 85% and you kept buying. I would have written a thread about the lesson and sold.