Coburn Ventures Podcast #228: Sell Disciplines, Part 1 of 2
May 15, 2025
Selling assets is often overlooked in investing, yet it's crucial. The conversation highlights how ownership impacts decisions and the emotional hurdles that make selling difficult. They explore improving investment discipline through competition between assets, pushing for clearer decision-making. Additionally, understanding how different outcomes influence strategies is essential, along with acknowledging biases and embracing failures. It’s a fascinating dive into the often-neglected art of selling in the investment world.
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Episode notes
Ownership Changes How You Think
- Investors behave differently after they own a position, which undermines clear selling decisions.
- Ownership reduces observational distance and increases defensiveness, making selling harder.
The 'Death Of A Dream' Problem
- Holding a stock magnifies emotional attachment and creates a 'death of a dream' when things go wrong.
- That emotional magnification obscures signals and increases the chance of poor selling timing.
Make Selling Criteria Explicit
- Increase equanimity and observational distance by making selling criteria explicit and rehearsed.
- Track signals against a predetermined game plan to reduce defensiveness during exits.