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Re: avocet post# 51015

Sunday, 02/03/2013 2:31:50 PM

Sunday, February 03, 2013 2:31:50 PM

Post# of 80868
Avocet, my friend, how did you end up in the situation you are in now with MSLP? Was it not unchecked optimism? Drinking management's Kool-Aide, as they call it.

The concept of "dead money" and "opportunity cost"

Let's say someone invested $20,000 in MSLP and lost 75%. They now only have $5,000. Their loss is actually a lot more because they're sitting on dead money.

Had they invested that $20,000 in another stock and received a 30% return during the same period, they would have $26,000. So, this person's loss is actually $21,000 when opportunity cost is factored in.

This is what unchecked optimism can do to an investor.