Charlie Munger's Alibaba mistake

Charlie Munger's Alibaba mistake: Why is admitting an investment error so difficult?

Even highly experienced investors can make decisions they later regret. Charlie Munger's comments about Alibaba remind us that reputation and experience do not eliminate the possibility of being wrong.

One psychological trap is becoming attached to an original thesis and interpreting every new piece of information as support for it.

Discussion: What should make an investor reconsider a position? Should the original thesis be reviewed at fixed intervals, or only when important new information appears?

How can we distinguish patience through temporary volatility from refusing to acknowledge that our analysis was wrong?