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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (19635)9/3/2004 12:01:40 AM
From: Madharry  Read Replies (2) of 78689
 
I am under the influence of some of the books I have been reading lately. Certainly I have fallen prey to the anchoring fallacy. and it cost me a lot of money in 2001. " if something sold for 200 last year surely its worth 12 now" . Unfortunately, the bubble was fed by layers of fraud and unethical behavior. Today I bought two short sleeve shirts and a pair of shorts for $7 a piece at the Boston Store. It made me feel good that they had been marked down from $35 or so. but i wonder if anyone had ever spent $35 for any of the items. Neverhtelss I felt comfortable that they were worth at least $7 to me anyway.
I dont know much about the sharper image other then the ceo keeps selling shares. What is your rationale for adding to your position other than that the price is lower that you previously paid? Yet you havent explained the change in the company that has resulted in this type of fire sale. what changed?
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