Monday, February 10, 2014

The Risk of the “Winners Curse”



The expression has often been used by Wall Street over the years.

In an auction or  any bid for a securities purchase where the “winner” gets to make  the purchase, that buyer may well overpay. 

Actual facts wouldn’t suggest the purchase. Yet  so many investors feel they have made a great deal of an investment that reflects this very phenomenon. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

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