What is a “no-brainer” investment?

A “no-brainer” investment is one where one does not need superior intelligence to understand that one would definitely make money investing in this option.

However, when the investment looks like a “no-brainer” to many, it ceases to be a “no-brainer”.

During the Tech-bubble of 1999-2000, investors in India thought it was a no-brainer to invest in tech stocks. Ditto for DotCom companies in the US during the same period. Buying Japanese stocks and real estate in the 1980s was a “no-brainer”. Harshad Mehta’s midas touch in 1991-92 appeared a “no-brainer”.

Be careful when everyone thinks of something as a “no-brainer”. Use your own brain when everyone thinks that “this is a no-brainer”.

#RidingTheRollerCoaster – 116


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