Biotech Values

[DewDiligence]

[Partly-on-topic]—City Sports, a chain of sports-apparel stores, has gone bankrupt and is liquidating all of its merchandise. Although the store routinely had discounts of 15-20% (plus an additional 5% in quarterly rebates for furnishing your email address), the store in my neighborhood was never crowded.

Yesterday, however, during the first day of the GOING OUT OF BUSINESS SALE, where all items were discounted a mere 10% (with no email rebate), the store in my neighborhood was jammed to the gills.

This seems like yet another instance of human brains being hard-wired to do illogical things. Examples of such behavior that are more directly tied to biotech investing have been discussed on this board under such monikers as base-rate fallacy and program-survival bias—e.g. #msg-68164207, #msg-68170440, #msg-68163164, #msg-104101612.