27-07-2023, 03:25 PM
Let's start the ball rolling on loss-sharing.
Currently I'm "bagholding" a biotech company (Novocure, NVCR) sitting on 50-60% drawdown. Currently my biggest lost on a percentage basis till date, realized or unrealized.
Will losses balloon to 80-90%? Maybe, but I think it still make sense to hold it, for the long shot (if one of their many medical trials in Phase III yield successful results, their earnings could 10x or more). Currently around <1% weightage.
Risk-reward calculus seems favorable.
IMHO, you can be both rational and suffer huge losses on any single position.
Currently I'm "bagholding" a biotech company (Novocure, NVCR) sitting on 50-60% drawdown. Currently my biggest lost on a percentage basis till date, realized or unrealized.
Will losses balloon to 80-90%? Maybe, but I think it still make sense to hold it, for the long shot (if one of their many medical trials in Phase III yield successful results, their earnings could 10x or more). Currently around <1% weightage.
Risk-reward calculus seems favorable.
IMHO, you can be both rational and suffer huge losses on any single position.