My investing muse - we cannot invest based on borrowed convictions 17Feb2022
Just because a certain investor bought in a certain number of shares of a certain company, it does not mean that this guaranteed profit. Recently, Soros's investing firm bought in $Rivian Automotive, Inc.(RIVN)$ , this remains something puzzling for me as the company will remain in the red for the coming quarters till they have ramped up their production. If we cannot explain the business to a young child within 5 minutes, I am afraid that we do not know the business well enough. After we have completed studies of the annual & earnings reports, we can establish an approximate value of a company. Should prices fall, we do not need to join the mass sell off caused by panic. Why do we need to run away from a sale - when a good company is available at good discounts (with a good margin of safety)? We can even consider adding to our positions cause we understand that the current price does not always reflect the value of a business....