📖Jesse Livermore
Review Your Investment Thesis
Regularly challenge your original investment thesis.
Regularly review whether your original reasons for owning a stock still hold. If the facts change, change your mind. Holding a broken thesis is the costliest mistake.
🏠 Everyday Analogy
📖 Core Interpretation
Jesse Livermore frames investing as a compounding game. Time amplifies quality and discipline, while unnecessary activity often destroys long-horizon returns.
💎 Key Insight：Adapting to new facts prevents holding broken investments.
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❓ Why It Matters
Short-term noise often forces investors out before value is realized. Long-term discipline increases the odds that fundamentals, not emotions, drive outcomes.
🎯 How to Practice
Extend research and review horizon, reduce unnecessary turnover, and adjust only when intrinsic value, risk, or opportunity cost materially changes.
⚠️ Common Pitfalls
Calling it long term while never reviewing thesis
Overtrading and damaging compounding
Ignoring opportunity cost and alternatives
📚 Case Studies
1
Union Pacific Breakout (1907)
Livermore bought Union Pacific as it broke through resistance, confirming a pivotal point during the 1907 panic rally.
✨ Outcome：Rode the sharp advance, captured large profits by selling into strength as momentum slowed.
2
General Motors Top (1929)
He identified a pivotal point as GM and leading stocks failed to make new highs despite market euphoria before the crash.
✨ Outcome：Sold short after confirmation of weakness, profited heavily during the subsequent 1929 market collapse.
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