It shouldn't be that I buy ABC and somebody says why is it better than XYZ? And now the monkey is on my back to defend my purchase against XYZ, a stock I may know nothing about I do this A- B test (as i call it), especially if my thesis is ,more general. if I think for examples that car manufacturers will do well, then the question is how do I express this. Should I buy Ford, GM, Mercedes, VW, Porsche holding , Honda and why.
I think it is an important too to verify ones thesis, if you like a particular stock. Sometimes, there is a simpler and less risky way to express a thesis. I do this often myself, mentally when I start to like a stock , then I try a similar peer, learn a bit about it and then try to justify why I like A more than B.
It's also a way to generate new ideas. Sometimes I decide I buy both because I think thee are equally good and in this case I just diversity to spread risk. |
