"You've held AVA with the same revenue stream it has now, has something led you to change your sentiment? "Not sure to whom your question is addressed but assuming it is to me, then the thing that changed my sentiment is the most important thing of all:
Valuation.
When I acquired the stock, the market value of the equity at the time (<$40m) imputed a
negativevalue for a meaningful part of the company's revenues:
https://hotcopper.com.au/posts/46044321/singlehttps://hotcopper.com.au/posts/45017577/singlehttps://hotcopper.com.au/posts/46044321/singleAt an equity value of $168m, which is the market value at which I sold my shares, I was no longer getting any part of the business for free (let alone for a negative value), but I was being asked to pay a valuation multiple which I assessed to no longer be attractive, on a risk-adjusted basis (one of those risks being, as I mention, excessive customer concentration).
Of course, not all risks become manifest, but investing with avoidance of capital destruction at front-of-mind requires adherence to an investment process that risk-adjusts investment returns.
Even if it means that risk-management approach only prevents harm in a minority of cases.
.
