I agree 100%, and it is Buffet/Munger's advice that has me overweight in AVXL.
But there's a saying which I hold near and dear.
"Don't fool yourself and you're the easiest person to fool."
Most on this board would agree (some begrudgingly) that AVXL is a risky investment.
Those agreeing begrudgingly would do so with a wink and a nod as if to say " But not really!"
I cry "foul!".
It's a startup Biotech running trials on the most frail and vulnerable people society has.
And involving the blood/brain Barrier no less.
A few unexplained deaths and a trial halt(which we saw in a recent BP vaccine trial) and the narrative changes, especially if BP has influence and the ears of people within the FDA/TGA.
One of the recent arguments I've heard is posters say is if they were to sell some shares they have nowhere else compelling to invest the money.
If they have a position in a dozen biotech stocks( which I have read is the only sensible way to invest in the biotech space. I believe Investor2014 employs this strategy) then they make a valid argument.
But if AVXL is their only biotech(as is my case) and it's a large % of their investment mix I might suggest they sell some shares and keep the money in cash as I do.
In my mind high risk +low risk balances out to acceptable risk.
I'm in total agreement with the longs that AVXL has the potential to make us all silly rich, but "too good to be true" has also stood the test of time.
(exiting soapbox now.)
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