Hi Prodigal, I like your framework of Tiers. The only one I’d disagree with (and strongly actually), is your
Tier 5: Love ya… not willing to sell yet… maybe you’ll regain your greatness…
I’m objecting here to the principle, not to your example of Arista. I’ve seen so many people get stuck by falling in love with a company, and thinking “maybe you’ll come back.” I’m thinking of the opportunity cost here. Why would you put dollars in a company for the next six months or a year, hoping it will come back, instead of in one of your companies in which you already have high conviction, and which doesn’t need to “come back,” and which you expect would be up considerably in that time???
That’s the way I think about it anyway.
Best,
Saul