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Strategies & Market Trends : Graham/Klarman Value Investing

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To: paulelgin who wrote (18)8/18/2014 8:55:43 PM
From: Jurgis Bekepuris   of 27
 
he may buy a $1 stock that he believes has a 50% chance of rising to $5 and a 50% chance of falling to zero.

OK, makes sense. But only if you can evaluate probabilities that it's 50-50% chance and not "90% it goes to zero, 10% it goes to $5". And for that it seems to me you need semicon and biotech expertise. Perhaps he has it or has some analyst in his company who has it. Personally, I would not be able to do it with biotechs or semicons, but there might be people who can.
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