Anthony Bolton, the great UK investor, believes that every share you own should have an investment thesis. That is, you should be able to summarise why you own, or want to own, a share in a few sentences that your teenage son or daughter could understand.
The investment thesis should be retested at regular intervals. When testing it you should think about what might lead to the share becoming ‘bad’; what might the ‘bear’ in the market place latch onto?
Can you provide convincing counter arguments to those who are much more negative about the share?
Bolton is one of those rare individuals who goes in search of disconfirming evidence – people are naturally inclined to search for evidence that confirms their currently held views, so it takes a lot of self-discipline to hunt out disconfirming facts and opposite views.
For example, he lik.......
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