As a rather disconsolate owner of HCL shares, I'm with @Noddy74 regarding any ASX listed company that has Scott Basham at the helm. Not unless I want to turn a large fortune into a small fortune.
So as I was licking my wounds this morning, I dragged out a copy of an article by Ian Cassel I kept just for such occasions. Attached is a copy for those who haven't read it, or those who like me, need to be reminded.
https://mail.google.com/mail/u/1/#inbox/FMfcgzGwHxvsmSdXkClcBGcZQlpmslbc
Ian says you should only average down when:
- The business is accelerating.
- The business is profitable with no financing risk.
- The business has a sustainable growth trajectory.
- The business doesn’t have a lot of debt.
HCL does not satisfy all four questions, so accordingly, I won't be averaging down.
Perhaps it's the Endowment Effect clouding my judgement, but my thinking is that if the f!&@ up can be put squarely at the feet of Scott Crash 'em, then a new CEO could, in due course, could get the business back on track.
Or is it a case of thesis broken, time to look for greener pastures?
I'm really bad at hanging on to stocks instead of cutting my losses, so would welcome comments (not advice) from wiser Straw heads
