“Never invest in a business you cannot understand.” Warren Buffet
“Behind every stock is a company. Find out what it’s doing.” Peter Lynch
There are two key decisions in investment decision-making: the buy decision and the sell decision. By being aware of the common pitfalls of buy decisions, we can potentially save ourselves from a painful sell decision.
Social proof is an extremely powerful force. It’s often noticeable at intersections when a group of pedestrians are waiting to cross. Often, if one breaks rank, others quickly follow.