Triage
Categories: Investing
You know what this is in medical parlance. Soldiers are brought in from the battlefield. Some combo of nurses and medics and doctors figure out who is save-able and who isn’t. They prep them for surgery. And get them in there as fast as possible.
Well, the same thing happens in money management. Companies “break” all the time. They fall from $87 to $62 in a single print. Then comes the hard part. Do you sell, taking the pain trade and just move on? Or was this a “nothing” and the Street is vastly over-reacting? Should you be doubling or tripling down on your bet? Or do you just wait...and see what happens?
This is where the big dogs make their money. The discipline to sell when you’re down for a stock you paid $83 to buy, thinking it was going to $200 in 3-5 years…is brutal. But it’s a must in the trenches if you wanna bark (or pee) with the big dogs.
