Asking these questions is a simple exercise that can add a lot of perspective. It forces the investor to think realistically about why they are considering the opportunity in the first place, and the associated probability of the various potential outcomes. These questions also help better frame the ‘margin of safety’ of an investment.
What’s My Upside? What’s My Downside?
Published by anonymousfinanceguy
I am a former Wall Street and Bay Street originator with a CFA who turned into an investment portfolio manager for a small group of families over 10 years ago. View all posts by anonymousfinanceguy
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