A long time ago, when I asked an investor what the criteria for judging a good entrepreneur, he said, ”It is whether you can exit when you should exit."
In the world of investment and business, this is the rule of thumb.
I agree almost completely with this type of opinion, as I believe that any business or measure must have clear exit conditions.
However, there are many stories that a V-shaped recovery has been achieved from a certain time, so it is not as easy as it sounds to say "I can withdraw when I can withdraw" .
In the first place, the purpose of strategic withdrawal is to prevent further losses and to secure resources that should have been invested in conventional measures and to be able to invest in other measures (and is expected to generate a return). Conversely, the disadvantage of withdrawal is the opportunity loss.
Therefore, it is necessary to compare the magnitude of opportunity loss with respect to loss avoidance and securing resources. (Although the value of the option can not be assumed in advance)
I have a clear answer to the question of whether these should be compared fair each time.
In other words, when I begin to work on something, as I wrote at the beginning, in my case, I start to think about "how easy it is to withdraw."
The benefit of thinking like this is that you can focus on discussing the allocation of your portfolio rather than on your opponents.
In other words, it is like moving away from the binary conflict between yourself and the market and moving to discussing your overall strategy.
To achieve strategic withdrawal, only how to create an ideal portfolio should influence your decision, and it is not desirable to make a decision in a game against the market.
How you have more flexible options than your opponent is an important point in protecting your position.
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