Make the hard decision

Livewire Exclusive

Livewire Markets

Even Warren Buffet only gets 6 out of 10 calls right. So investors of all stripes should be prepared to respond appropriately for the calls they will get wrong. In this exclusive video, Dean Fergie  from Cyan talks candidly about how his fund handles making some hard decisions, illustrating their process with a recent high-profile example. 

 

Key points

  • Investors like to think they will get all their decisions right. The reality is that even a great investor might get only 60% of their decisions right.
  • Approaching investing from that perspective, you must be prepared to make some hard decisions, and deal with mistakes appropriately. Don’t ‘put it in the bottom drawer’, but cut the losing position, take the loss, and recycle the capital. 
  • The recent high-profile case of Blue Sky is a recent example of a profitable position that started to fall quickly, triggering Cyan to make the hard but immediate decision to sell. The stock went on to lose about 80% of its value over 4 months.

 

Further insights 

Cyan is making meaningful investments in some of the most promising (and often overlooked) smaller companies listed on the ASX today. Find out how

 

 

 


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