Jason Hall

Now, if we own a stock that falls in value, again, this is like that meat sack part of us in our brain that we don't really always understand that we have to fight against.

The value of a stock going down hurts more than a stock going up feels good.

They've done studies and looked at our brains and our pain centers actually fire when we perceive that we've lost money.

So often we sell in both cases.

In the case of a stock that's falling, we sell to make the pain stop.

And then the stock that's gone up in value, we sell to avoid the imagined future pain when the stock is inevitably going to fall in value again.

Yeah, and we don't even need to use a 100-bagger.

They're extremely rare.

We can use just your old run-of-the-mill 15-bagger.

That's not run-of-the-mill.

But what I'm saying is it's really, really impressive what happens with these stocks that go on to be big winners.

But I want to start, Warren Buffett is famous for his, quote, first and second rules of investing, you know, don't lose money.

and see rule number one.

But if we take this on a single stock level, it's just myopic and ridiculously impossible.

Warren Buffett probably wrote more words about his investing mistakes than he did his successes.

And if the greatest of our time has failures, that means it's okay.

So it's less about batting average and more about slugging percentage to throw a sports metaphor in here.

But the process, when we think about it more holistic, I think that really helps us as investors.

And it's been said a million times, the most you can lose on a single stock you bought is 100% while the upside is theoretically unlimited.

Realistically, upside is definitely limited for most businesses, but the kernel there is asymmetric returns, meaning that the upside is far greater than the downside.