After you’ve assessed growth, profitability, and financial health, your next task is to look at the bear case for the stock you’re analyzing. Start by listing all of the potential negatives, from the most obvious to the least likely. What could go wrong with your investment thesis? Why might someone prefer to be a seller of the stock than a buyer? Constructing a convincing bear case is especially important for those who like to buy high-quality companies that have hit temporary speed bumps, because what looks like a speed bump may very well be a roadblock on closer inspection. Equally
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