Savvy investors with an IQ higher than a banana us
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Savvy investors with an IQ higher than a banana use a combination of historical analysis, when relevant, and additional pieces of information to try to calculate the future.
As an example, a biotech that got approved for their drug launch 3 months ago and is in the process of scaling up their drug production and sales is going to be very tough to predict their future by ignorantly staying laser focused on the financial information of the past. Only a fool would try to extrapolate a historical period of tiny sales into the future of production and sales up multi-fold almost over night. Based on that insane logic, if the first batch of drug produced doesn't immediately show millions in profits, the drug ompany should just close up shop.
Luckily for medical science, the biotech industry doesn't deploy such brain dead analysis.
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