http://ift.tt/2i9FTgG
The last post explained why I think a full valuation is not a necessary part of the investment process. A decent stock note is 15 pages on the business, one page on the management, one paragraph or even one sentence on valuation.
Valuation might normally be a set of questions along the lines of "what do I need to believe" to get/not get my money back.
But I would prefer a simple modification to this process. This is a modification we have not done well at Bronte (at least formally) and we should do better. And that is the question of averaging down.