Do you have Conviction?

I feel uncertain, more uncertain about the future now than I did 20 years ago.

The way it plays out is I have more stocks in my portfolio now than I had 20 years ago.

I know for some people this becomes the issue of don’t you have enough conviction?

And I hate that word in investing, because it puts us on a spot.

So, do you have enough conviction?

Can’t you put all your money in this if you feel that strongly?

No, I never feel that strongly. I don’t have that much conviction. Maybe you do.

And there are investors out there, I think, who overestimate their capacity to value companies and overestimate the capacity of markets to correct and then underinvest.

They might still make money for a while, but at some point in time, their portfolios will blow up

said Aswath Damodaran

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