The concept of the Sunk Cost Fallacy explains many of history’s greatest catastrophes, including World War I, the British Empire, and Communism.
People “commit the Sunk Cost Fallacy when they continue a behavior or endeavor as a result of previously invested resources,” Behavioral Economics observes. Factors that drive the sunk cost fallacy include fear of loss, tradition, patriotism, ideology, loyalty towards institutions or people, history, and commitments.
A classic example of the sunk cost fallacy is a fan who supports his team through many losing seasons. …
Yes, 2020 was a horrible year that we all hated. However, some good things did occur in 2020.
Moreover, 2020 could have been far worse because some terrible stuff did not occur last year. To pump your morale and make you laugh in 2021. Here are some great things about 2020:
Change Healthcare (NASDAQ: CHNG) is one of of many healthcare-technology companies benefiting from coronavirus.
Mr. Market paid $15.73 for Change Healthcare on 13 January 2020 and $24 for Change (CHNG) on 15 January 2021. Investors are interested in Change because it provides software, analytics, technology-enhanced services, and network solutions for healthcare providers.
Change Healthcare solutions include Enterprise Medical Imaging, Customer Relationship Management, Payment Accuracy, End-to-End Revenue Cycle Management, Clinical Review, Medical Networking, Provider Network Optimization, Provider Payment Management, Enrollment, Care Operations, Payment Solutions, Pharmacy Benefits, Risk Adjustment Analytics, Healthcare Consulting, and Clinical Decision Support.
I think investment in healthcare is growing because people are giving healthcare more thought because of coronavirus. The pandemic and all the coverage of COVID care have many people researching and investigating healthcare stocks. …
Sadly, the 6 January 2021 Capitol Insurrection will not end the civil unrest and chaos in America. Instead, I think the storm of nihilism set loose by President Donald J. Trump Sr. (R-Florida) and his enablers will get worse.
Processing such events is always difficult. Here are a few observations to help you analyze our dark times.
First, Trumpism is nihilism. The Internet Encyclopedia of Philosophy describes nihilism as “the belief that all values are baseless and that nothing can be known or communicated. It is often associated with extreme pessimism and a radical skepticism that condemns existence. …
Sarepta Therapeutics (NASDAQ: SRPT) shows the danger of investing in medical research companies reliant on breakthrough drugs.
Sarepta lost 50% of its market capitalization after the company’s CEO Doug Ingram admitted its gene therapy for Duchenne muscular dystrophy does not work, Barron’s reports. In essence, the failure of one drug can doom a company such as Sarepta (SRPT).
In detail, Mr. Market paid $168.95 for Sarepta on 7 January 2021 and $90.18 for Sarepta on 14 January 2021. I think Sarepta’s share price collapse shows that biotech stocks are in a bubble driven by popular faith in biotechnology. …
Constellation Brands (NYSE: STZ) shows alcohol could be a pandemic-proof industry.
For instance, Constellation’s quarterly revenues grew from $1.902 billion on 29 February 2020 to $2.438 billion on 30 November 2020. Similarly, Constellation’s quarterly operating income grew from $545.10 million on 29 February 2020 to $783.10 million on 30 November 2020.
In addition, Constellation’s quarterly gross profit grew from $949.80 million on 29 February 2020 to $1.268 billion on 30 November 2020. Interestingly, the gross profit, income, and revenues at Constellation (STZ) grew despite shrinking revenue growth.
In the quarter ending on 29 February 2020, Constellation’s revenue growth rate was 5.88%. Stockrow estimates Constellation’s quarterly revenue growth rate fell to -6.38% on 31 May 2020 and 3.57% on 31 August 2020. However, the quarterly revenue growth rate rose to an impressive 21.94% …
News reports indicate SpaceX and Tesla (TESLA) madman Elon Musk could have replaced Jeff Bezos as the world’s richest person.
To explain, observers speculate Musk’s Tesla (NASDAQ: TSLA) stock holdings are worth more than Bezos’ Amazon (AMZN) stock. The BBC estimates Musk’s Tesla holdings were worth $185 billion on 7 January 2021.
However, Musk may not stay number one for long. On 8 January 2021 Musk’s wealth by fell by 4.7% making Bezos number one again. However, on 12 January 2021 Tesla rebounded making Musk the world’s richest man again.
We at Lists of Doom want to help Musk spend his money. …
Uber (UBER) CEO Dara Khosrowshahi corrected one of his company’s greatest mistakes in 2020. Uber Technologies Inc. (NYSE: UBER) bought Postmates for $2.65 billion in December 2020.
Acquiring Postmates gives Uber back some delivery capabilities it lost when it ended grocery delivery partnerships in 2018. To explain, Uber had grocery delivery partnerships with Walmart (WMT) and other companies between 2016 and 2018.
Unfortunately, Uber was not serious about delivery, which caused Walmart to end its partnership in 2018, Reuters reports. The coronavirus pandemic; however, changed Khosrowshahi’s mind about delivery.
Numbers, such as a negative revenue growth rate of -29.22% for the quarter ending on 30 June 2020, prompted Khosrowshahi to double down on delivery. To explain, Uber Eats became the only growing business at the ride-share giant. …
America completed an unprecedented week of history on 9 January 2021.
When President Donald J. Trump (R-Florida) went to bed on Monday, he was the most powerful man in the Republican Party, the most influential man in the United States, and a stronger contender for the 2024 Republican presidential nomination. However, when Trump woke up on Thursday morning, he was a complete has-been.
Not since President Richard M. Nixon (R-California) has a major American political figure destroyed himself so fast and so thoroughly. …
Hopefully, the 6 January 2021 Trump riot will kill U.S. Senator Ted Cruz’s (R-Texas) effort to recreate the events that led to Jim Crow.
Cruz and several other U.S. Senators tried to create a Commission to investigate electoral fraud and pick the next president. Frighteningly, Cruz wanted to model his panel on the commission that hid the loathsome Compromise of 1877 from the public.
Congress created the Commission because there was no clear winner in the 1876 presidential election. Samuel J. Tilden (D-New York) won a clear majority of the popular vote 4.3 million. However, Rutherford B. …