Averaging down
BehaviorBuying more after an investment’s price falls.
Why it matters: It is sensible only after rechecking evidence, value, alternatives, and total position size.
Field dictionary
Finance, translated.
Definitions are only useful when you know why they change a decision. Search by word, concept, or consequence.
5 terms
Confirmation bias
BehaviorFavoring information that supports an existing belief.
Why it matters: A deliberate counter-case helps prevent the thesis becoming immune to evidence.
Coverage gap
BasicsAn area where a data provider, monitoring rule, or source set has incomplete visibility.
Why it matters: Silence from a tool is not evidence that no material event occurred.
Moat
BusinessA durable advantage that helps protect attractive economics from competition.
Why it matters: A moat needs evidence in customer behavior and returns, not just a strong brand narrative.
Thesis
BusinessA falsifiable explanation of why an investment may produce an attractive outcome.
Why it matters: It connects drivers, evidence, valuation, risk, and reasons to exit.