Wednesday 5 December 2007

Stand out. Don't be part of a Herd

A city bred mathematics teacher was posted to a rural school. On his first day he asked the class,

“There are 100 sheep in a pen. If one were to walk out, how many remain?”

Bang came the answer

“ None “

Teacher was aghast,

“ You don’t know how to count. If one goes out, 99 will remain.”

But you don’t know anything about the sheep. If one walks, the entire lot follows”, replied the street smart class.

Even humans have the herd mentality. But, while investing, always disregard the majority opinion (Zurich Axiom 10). It is invariably wrong. Never follow speculative fads. The best time to buy a share could possibly be when no one wants it.

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