Common stocks … common tendency

Remember the words of Benjamin Graham: “Most of the times common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble … to give way to hope, fear and greed.

#RidingTheRollerCoaster – 199

 

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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

Irrational markets

John Maynard Keynes is believed to have said, “Markets can remain irrational for longer than you can remain solvent”

#RidingTheRollerCoaster – 42

IPO mania of the mid-1990s

In the IPOmania or the IPO craze of the mid-1990s in India, application forms were sold at a price (unofficially)

#RidingTheRollerCoaster – 29