@RothbardI was a seller today. I essentially have a rule to...

@Rothbard
I was a seller today. I essentially have a rule to decisively sell when a thesis break occurs- which it has for me. My thesis that commoditised product lines would eventually make way for differentiated product mix, stronger margins and eventually higher profit may be true but it will take a lot longer than expected. As such it wouldn’t really meet my investment criteria as a de novo buyer today, so I shouldn’t really hold.
You may (in fact probably will) be right over the long term but this was a major setback. This growth deceleration this FY will mean at least another 2 years of steady growth before multiple rerating can realistically occur. Consequently there is an opportunity cost in holding onto this, particularly given some execution risk down the track.

I will have another look at this in 12-18months when perhaps the story has changed.