Question of the week #11
What role does gut instinct play in your investing decisions?
My gut plays a huge role in my investing decisions. Certainly I want to understand the landscape, the competitors, the concept and the long term strategy. Yet when a company is just starting to grow it is an evolution. What you believe you will do or what will happen is not necessarily what will happen or what you will do. The market is the ultimate answer on which direction a company will grow.
I want to see numbers and plans but at the end of the day it is really my instincts around investing in someone and their company. Is this something that I understand why it is gaining traction and why it is filling a void in a marketplace and is this the right person to build it. That part is gut and to me that is the most important part.