I usually own an asset because I believe it has value over and above where it is currently trading.
It may be because it has a great outlook and I expect the business to do better than what the market is expecting.
It may be because I see some value within the business...could be intellectual property, cash on the balance sheet, hidden assets, ie. land, possible takeout, etc.
Whatever the case, whenever the stock takes a hit, I always struggle with determining whether my original investment thesis was faulty...admitting one is wrong is never easy. Not only that, but assuming I still believe in the asset, then I am left with knowing that it is obviously going to take a lot longer for that thesis to play out. What to do? What to do? That is the question.
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