Replies to post #217627 on Biotech Values

[Whalatane]

With respect I'll disagree re " logically immaterial to your decision to hold "

There will always be known unknowns as well as unknown unknowns around a decision to buy a stock.
If I'm buying the stock I feel I have researched it enough / followed it enough to understand its business plan , its execution of that plan and know its delta re general market movements.

So having gone thru that ground work I know that I will not know everything but will have a range I can live with.
If it drops below that range ( ie down 20% for example ) I conclude theres something I've missed and re evaluate my position .

Just what works for me
Kiwi

[biocqr]

This sounds like Kahneman's "Endowment Effect" where we value what we own more than what we would pay for it if we didn't own it...

https://en.wikipedia.org/wiki/Endowment_effect

One of the most famous examples of the endowment effect in the literature is from a study by Daniel Kahneman, Jack Knetsch & Richard Thaler,[4] in which participants were given a mug and then offered the chance to sell it or trade it for an equally valued alternative (pens). They found that the amount participants required as compensation for the mug once their ownership of the mug had been established ("willingness to accept") was approximately twice as high as the amount they were willing to pay to acquire the mug ("willingness to pay").