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Jason Zweig: Biotech Stocks…And Benjamin Graham

FYI: Against that backdrop, the Credit Suisse analysts insist that biotech is moving toward what they call a “Nirvana Model” of “unprecedented growth and profitability.”

This “new era” talk reminds me of the immortal words of Benjamin Graham in the first edition of the book Security Analysis in 1934. Graham (with his co-author David Dodd) was writing in the wake of the Crash of 1929, after investors had driven stocks to unsustainably high prices on the belief that corporate profits could grow indefinitely. The passage is so profound and impeccably written, it’s worth quoting at length:
Regards,
Ted
http://blogs.wsj.com/totalreturn/2015/03/27/biotech-stocks-and-benjamin-graham/tab/print/?mg=blogs-wsj&url=http%3A%2F%2Fblogs.wsj.com%2Ftotalreturn%2F2015%2F03%2F27%2Fbiotech-stocks-and-benjamin-graham%2Ftab%2Fprint&fpid=2,121
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