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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (21170)	9/6/2006 3:40:56 PM
From: Biomaven	Read Replies (3) \| Respond to of 52153

Ah, the grass is greener phenomenon. Probably a common perception online - most folks (generally not those on this thread, though) tend to wax more eloquent about their winners than their losers. So it's easy to get the feeling that everyone else is doing better than you are. A couple of years ago we had a "my worst biotech blunders" discussion. That may be too depressing right now, but maybe it would be a good topic to revive if the sector rallies. When my son was learning chess as a young kid, I would always explain to him that a loss was generally more educational than a win - a win might just be because the other guy played poorly, while a loss always contains a learning experience. Not sure if the same rule applies to investing, but I do think it is important to try to figure out what you did wrong when a decision turns out badly. There is now a whole school of behavioral economists looking at why people make irrational investment decisions - a good understanding of that would likely lead to a good strategy (do the opposite). I often have wondered if an outfit like Fidelity has ever "peaked" at the investment decisions made by its customers. You could probably do quite well by having a fund that just mirrors what the top 10% of customers do (and maybe does the opposite of the bottom 10%). Peter