AKSO.OL
🏹 A ‘hunter’ investor turned a potential 40% loss in Aker Solutions into a 24% gain by strategically buying more shares as the price fell.
💰 Averaging down requires strong conviction in the original investment thesis remaining intact despite the price decline.
⚠️ This strategy involves concentration risk and should only be applied to businesses understood deeply, eventually selling if the thesis breaks.
@adriarivero:
“For example, a hunter from this case study bought shares of Aker Solutions in April 2008 at 15.8 €. A year and a half later, the stock had fallen drastically. In September 2009, he decided to buy more, reducing his price average to 7.6 €. In January 2010, he sold everything at 9.58 €, after realizing that his thesis no longer had sense. If he hadn’t done anything, he would have lost 40%. By averaging down, he exited with a gain of 24%. Instead of being a rabbit and waiting, or an assassin who cuts losses, the hunter doubled his bet when the probabilities were in his favor.”
Watch the exact part of the video where @adriarivero talks about Aker Solutions here:
Watch the video on YouTube
Read more articles analyzing Aker Solutions (AKSO.OL) at the provided link. AKSO.OL stock.
