Peter Hall, Chief Investment Officer at Hunter Hall, openly admits that his career is littered with value traps. He says they look cheap on the surface, can be difficult to avoid and are often ‘very seductive.' On the flip side, he says big wins have more than offset the traps. In this video, he outlines some of the characteristics of value traps and emphasizes the importance of having a strong sell discipline. Catalysts to sell could be a stock reaching his assessment of intrinsic value or management failing to deliver on promises. However, Hall explains that one of the most valuable lessons he has learned is being willing to get ‘egg on your face’ and admit when you make a mistake. “I’d rather look like an idiot than lose money.”
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