Insights and advice from a business-minded investor implementing the deep-value approach, full time.
What do you do with a stock underperforming, due to the business deteriorating or stagnating. The classic value trap. What do the readings suggest?
I value each business based on recent earnings and net-cash. If that starts deteriorating below the price I paid (or even close to it) I’ll simply cash out of the stock and recycle into something better.
Quintessential investing precepts🙏
What do you do with a stock underperforming, due to the business deteriorating or stagnating. The classic value trap. What do the readings suggest?
I value each business based on recent earnings and net-cash. If that starts deteriorating below the price I paid (or even close to it) I’ll simply cash out of the stock and recycle into something better.
Quintessential investing precepts🙏