Readers of a community Q&A asked how to tell a rational exception from an emotional one, and what to do when a stock fails one of your own tests. Iggy and Angela work through the questions and give three tests to run before you make an exception.
Most investing rules fail not because they are wrong, but because a tempting yield makes us want to bend them. In this episode, I work through reader questions on what to do when a stock misses one of your own tests, including a gearing limit breached only after a property revaluation. I share three tests that help you decide whether an exception is fair before price, yield or excitement makes the decision for you. The key is simple: a real exception is written down, measurable, and applies to a kind of business, not a share you happen to like.
Key takeaways:
Ask whether an exception applies to a whole kind of business or only one favourite share
Write the exception in numbers before looking at the share price
Make sure a poor result could actually change your conclusion
Record a failed test, such as gearing above 35%, until the next results
Use one painful past decision to build your first written investing rule
Iggy’s Forensic Disclaimer
This content is produced for educational and informational purposes only. I am not a financial advisor. I am a retail investor who applies forensic analysis to my own portfolio and shares that process publicly. Nothing here constitutes a recommendation to buy, sell, or hold any security, and no specific target prices or personalised financial advice are offered.
Stocks assessed under Iggy’s Forensic Yield Standard are benchmarked against a 4.7% minimum yield hurdle. Stocks flagged as Growth Watch fall below this threshold but demonstrate clean balance sheet metrics and an identifiable growth catalyst. These carry a materially different risk profile and are not suitable as yield replacements for income-dependent investors.
All data is sourced from public filings and verified sources. Where data is unverified, it is explicitly flagged. All investments carry risk, including the potential loss of principal, and past performance is not indicative of future results. If you are making investment decisions involving CPF, SRS, or personal capital, please conduct your own due diligence or consult a MAS-licensed financial adviser before committing funds.
