Everyone makes mistakes—but in investing, the real question is whether you have the courage and the process to own them and learn from them.
In this clip from The Call @ Hedgeye, CEO Keith McCullough and veteran Industrials analyst Jay Van Sciver have a frank discussion on why it's so difficult for investors and analysts to walk away from a call or a stock pick, no matter their experience level.
"By far the most popular research note I ever wrote had the title, 'We're Wrong Here,'" Van Sciver says. "You spend a lot of time on [an idea] and you're really personally invested in the thesis, and you have to just let go. And that's hard."
The emotional attachment to an idea can cloud judgment, leading investors to hold on too long. McCullough puts it bluntly:
"When you spend a lot of time in the weeds, you can get stuck. But at the end of the day, it's just a ticker. You never have to own or short anything."
He continues: "These are not your kids and sending them off to school. They're tickers. Just because you did a lot of work on it doesn't mean you stay with it. If the market gets you first and you lose money, then you're not good at this."
Investing is about discipline, not attachment. Learn how to remove emotions from your process—subscribe to The Call @ Hedgeye today.
