Imagination …

Humans are believed to be the only animals with the power to imagine. We can imagine situations that are not there yet, or events that have yet to take place. This ability has probably been one of the major factors behind all developments.

So when we are feared, we imagine the possibility of an event with unacceptable or bad outcome. And imagination of profit leads to en emotion known as greed.

#RidingTheRollerCoaster – 161

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How much land does a man need?

Greed knows no end. The Great Russian writer Leo Tolstoy wrote a short story titled “How much land does a man need?” This story is a wonderful account of what greed can do.

If you haven’t read this story, I strongly recommend it.

Greed is a basic emotion. It can lead to ruins as the story suggests. One must be ambitious, but avoid greed.

In the financial markets, we have seen many falling prey to the greed and losing capital.

#RidingTheRollerCoaster – 88

Imagination

Humans are believed to be the only animals with the power to imagine. We can imagine situations that are not there yet, or events that have yet to take place. This ability has probably been one of the major factors behind all development.

So when we are feared, we imagine the possibility of an event with unacceptable or bad outcome. And imagination of profit leads to an emotion known as greed.

#RidingTheRollerCoaster – 83

Emotional or rational

When the stronger emotions of greed and fear take over, rationality is thrown out of the window.

“Riding The Roller Coaster – Lessons from financial market cycles we repeatedly forget” is a story of two roller coasters – one in the market (visible) and the other in our minds (invisible). The emotional roller coaster could turn out to be more harmful than the one outside in the markets.

#RidingTheRollerCoaster – 81

Man and mania

Tulipomania, Ulipomania or IPOmania – “man” is the common denominator in all “manias”

 

#RidingTheRollerCoaster – 28

Fear and greed

Both fear and greed are a result of what is happening in the external world – actually our reaction to the events in the outside world

#RidingTheRollerCoaster – 22

Amar Mehta’s comments on Facebook about the book

Reading Riding the Roller Coaster has been an enriching experience. Amit is a delightful story teller. He also invariably has a point which is put accross for us to evaluate in an unbiased manner. This book is thought provoking, and will help many layman investors see connections between history, philosophy and emotions before making investment decisions. The uniqueness of this book is the simplicity, reference to the holy Bhagvad Geeta & numerous examples which makes you think and re think of investments from a completely new lens. My favourite is the “Seeds of the crash are planted in the times of the boom & vice versa”. The cycle is the destiny.

Amit – It’s a great achievement. Wishing you all the success in future endevaours!!