
When Should You Average Down?
Averaging down is a skill. Done well it can be your greatest asset. Done poorly it can mean disaster.
The best part of undertaking more than 80 speaking engagements in the last few years around the world has been the incredibly smart, diverse, fascinating people I’ve met; investors, academics, students, world leaders, scientists, visionary business leaders, social activists, amazingly helpful event planners, and a 12 year-old playing Jimi
The best part of undertaking more than 80 speaking engagements in the last few years around the world has been the incredibly smart, diverse, fascinating people I’ve met; investors, academics, students, world leaders, scientists, visionary business leaders, social activists, amazingly helpful event planners, and a 12 year-old playing Jimi Hendrix covers on a Chicago street corner who made all the plane trips worthwhile.
Throughout all of those experiences, I’ve been asked a few questions that I continue to think about months, sometimes years, later. One of those questions was: “what have you learned from advising scores of pre-IPO boards and small public companies that you wish you knew when you were co-managing a small-cap special situation hedge fund?” Such a great question. Here are my top five answers.
Here is Adam Epstein’s presentation at our MicroCap Leadership Summit:
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Averaging down is a skill. Done well it can be your greatest asset. Done poorly it can mean disaster.
Nicolai Tangen is the CEO of Norges Bank Investment Management, Norway's $1.4 trillion sovereign wealth fund.
Dilution is the subtle erosion of ownership. This hidden, persistent addition of new supply of shares leaves shareholders with less and less of the company’s value. Dilution, like inflation, is a silent killer of returns.