Simon( I think it was) wrote about the need to bin stuff that was going nowhere and where they were now nothing more than clutter surrounded by a halo of hope (?). I did that today. Two "post reorganisation" shares. If I say I made a capital loss on them and was glad - I would not be lying. The fact is that we are not so rational about these things - anyone read Daniel Kahneman "Thinking , fast and slow"? The reason that outsiders are priced the way they are is simply because the price reflects their prospects. And these were/are outsiders. Theoretically capable of assuming a growth path but in terms of probabilty - but on deeper examination they reflect a business model that was "me too" , not an especially dynamic leadership - ( I am glad of that in one sense I would have been tempted to hang in there if Joe Brilliant had been leading the team...) only with limited capital ( so not going to buy anyhitng big), no especially protected business - as in wide open to competition - and moreover operating in a competitive place. It feels good. Now, what can I buy - or add to!!?
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