One of my favourite terms for investment is “preponderance of evidence”. This is actually a legal term. In a criminal trial there needs to be evidence beyond a reasonable doubt, whereas in a civil trial evidence only needs to meet the benchmark of preponderance of evidence.In other words, while not 100% certain, the data stacks up on one side, leading to the preponderance of evidence.
But back to my preponderance of evidence. When deciding about an investment we’re naturally doing research on the stock and stacking up what is in favour of buying and what is not.We’ll never have everything on one side or the other, but if we do find a preponderance of evidence then I am happy to act.Now, make sure your research is true and not suffering from confirmation bias, where we only search out data that confirms our existing view.
But a word of caution: don’t make wholesale changes because of one winner or loser. Changes to the process should be infrequent and small.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SIMON BROWN: A preponderance of evidenceYou will never be 100% certain of any one investment decision — but if the data stacks up one way or another, based on an objective process, you should do well
Source: FinancialMail - 🏆 20. / 63 Read more »
SIMON BROWN: A preponderance of evidenceYou will never be 100% certain of any one investment decision — but if the data stacks up one way or another, based on an objective process, you should do well
Source: FinancialMail - 🏆 20. / 63 Read more »