You’re talking like a rational actor. However there is a lot of irrational behavior caused by principal agent problems in investing. If a trade goes belly up th

You’re talking like a rational actor. However there is a lot of irrational behavior caused by principal agent problems in investing. If a trade goes belly up the boss or client is going to ask why you bought a company doing 36 points of gross margin in an industry where the average is 60. In many cases, to preserve competitive advantage, the company doesn’t want to disclose the mix of revenue and profit margins of its business units, so investors don’t even have any way to evaluate why the company is doing only 36 points. So in many cases it can be “rational” to shut down a business unit making $25 million of gross profit.