I think there is a psychological bias, based on fear when we lose, particularly a large capital. So to come out of it is not easy, and investors don’t worry even if they miss out on certain opportunities, this is all personal. Not all can get back on the pedal quickly after falling, as the loss even if happened on its own, and not due to lack of due diligence, still lingers in the mind. So not looking at certain businesses may not make any impact, if the focus is on some other businesses which are yielding good results. Lessons are relative and personal too. Something which seems pretty ordinary may seem like a big lesson to some.
We need all kinds of people in the market, if everyone believes GARP, BAAP styles, prices will not come down. If no one believes in asset allocation, everyone will invest in equities and prices will not come down. If there is no profit booking, there may not be fall. So there is place for all kind of people, scared, reckless, overcautious, believers, naysayers, all kinds.
Just thinking out loud.