RE:RE:RE:Not properly wiredGreat discussion!!
Here are some things I do and passed on to my clients when I worked in the investment business.
1....BEFORE you buy have a very clear idea why you are buying shares in the company
2...BEFORE you buy set a clear plan as to when you will sell and then stick to it. This plan can range from owning for a couple of hours to decades. Or can be a percentage - sell if it goes down x% or goes up y%.
3....Don't look in the rearview mirror except if there is a lesson to be learned that will help you make better decisions in the future. Don't beat yourself up with "wouda coudas".
The reason for this advice is very simple. Usually your sanest moment is after you do your DD and just before you buy. If you stay disciplined by following Point 1 and 2, you will take out a lot of the emotion that leads to mistakes being made.
So in putting Points and 2, let me give an example to illustrate.
Back in the 1970s, I bought KO. The reason was that they had great management, a good product, and were expanding outside of North America. My plan was to hold it long term as a growth company. About 6 months after I bought, the whole market tanked and my shares in KO were down about 40%. So I had to make a decision about what to do. I looked at the situation and determined that none of the reasons that I had bought the shares had changed and so I didn't sell into the bear market. Twenty five years later a successive management team took over the company and in reviewing what they were doing, I came to to the conclusion that they didn't know what they were doing and hence violated one of the reasons I bought in the first place (ie...great management) and so I sold my shares.