MOST PEOPLE THINK A STOCK DROPPING 30% MEANS THEY WERE WRONG.


Not always.
Sometimes it means the business broke.
Sometimes it means earnings are falling.
Sometimes it means the thesis is dead.
But sometimes it just means the market is emotional and impatient.
This is why I do not ask one question.
I ask several.
Did EPS grow?
Did revenue grow?
Did margins hold up?
Did guidance improve?
Is the moat still there?
Is the valuation better now?
If the business got better and the stock got cheaper, that is not always a problem.
Sometimes that is literally the opportunity.
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