Why We’re Not Buying Appen Stock On the Dip

The difference between confidence and arrogance is whether or not you can walk the walk. Confidence is a highly desirable quality for managers because it’s married to another prized quality – decisiveness. And as a leader, you won’t be very persuasive unless you make decisions with conviction. In the world of investing, we say people with conviction have “strong hands.”

If you’re a confident investor, you’ll put your money where your mouth is. You’ll be less worried about being seen as some market oracle and more concerned about learning how to become a better investor. Investing with conviction means you trust your own judgment. Experienced investors know how important this is for your mental health. You will not sleep well at night if you cannot make a decision and stick with it, even when things appear to be going against you.

Today, we have a decision to make. We’re holding a miniscule amount of Appen (APX.AX) and our position is down -30%. We couldn’t be happier, as we had only just started buying it. (It’s the smallest position we have in our 27-stock portfolio). Before we take advantage of this great opportunity to purchase a growth asset at a 30% discount, we need to decide if this is a stock we want to be holding. The growth is there for sure:

Credit: Appen 2019 Annual Report

While the business looks extremely healthy, we’ve recently come across some concerns that make this asset much less appealing.

Investing in Appen Stock

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