Art Of Boring

In this episode, Portfolio Manager Jeff Mo discusses common behavioral biases that can hinder clear sell decisions, and the tools, such as checklists and trigger points, that can help slow down emotional thinking. He provides examples of companies that he and his team properly exited based on changing fundamentals as well as those they may have held onto for a bit too long, proving the power of the endowment bias. Key points from this episode: Mawer’s sell discipline mirrors the inverse of its buy criteria: wealth creation, management quality, and discount to intrinsic value. The endowment bias makes it difficult to sell stocks you already own; try to always consider your holdings, and don't get married to them. Valuation is not the most important plank of Mawer’s sell discipline framework. Wealth creation and excellent management teams come first. While some believe the worst sell misses are the ones that have gone down considerably, Jeff believes the worst ones are actually the ones that go nowhere. It is