One of the biggest challenges for long-term investors is to know when to quit rather than doggedly stick to their position under the guise of patience or courage. We think this is one of the most difficult things to do well.
The legendary investor Charlie Munger advises that in making decisions one should have regard to the facts and consider how one’s biases may affect what facts you have, and the interpretation thereof. It is easier said than done, but better research and less bias should result in better long-term investment outcomes.
WTW – February 2023
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