the habit of doubling down on a loser can turn a small mistake into a giant disaster
Agreed. For ESNT, I am still a long ways from what I would consider a full position. If ESNT goes to zero tomorrow it would be annoying, not a disaster. They had a good quarter with reasonable (though slowing) growth in both revenue and earnings, TTM P/E of 11, with a very low (and decreasing) combined ratio. This looks like a good story to me and I think the stock has been drug down along with the rest of the market over the last few months while their business remains strong. If a recession is on the way, and people quit buying houses, this will be a bad buy. But I do like to buy stocks when they are on sale so I dipping into my war chest today.
DT