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No. of Recommendations: 3

this is one I flailed about with in 2014. It was an above core position. But it was a new business model for me

Three factors
- was it cheap - it came up on a Magic Formula screen
- was it growing fast - yes by acquisition
- where acquisitions good? Don't know - no disclosure; chatter multiples going up; but company had history in this area and you can't assume they would get stupid on you

so a more than core could be justified

What about google in 2015

Three factors
- was it cheap. Debatable.
- was it growing fast. Yes. Esp. for a company this size.
- where acquisitons good. Not an issue

If you had core, then you could go with more than core based on middle point - with understanding path to growth rates weren't predictable (and there was also the matter of spending a lot and that was controllable)

There is some hindsight bias going on here too I know but they key is if you think these are core already - whatever formed that opinion - these get to you being a bit more confident.


I'm just going to label my stocks now.
The idea is to have an expectation that forms the buy.
It you are more certainly why you buy it then maybe you'll be
confident on keeping it
IN the end, maybe this is just a way of identifying conviction levels upfront.

We can be 100% right on an investment
And still not make money.
I'm tired of it.
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