Tuesday, September 28, 2010

Popular Investment Success Stories and a Lottery

The investment public is usually impressed by anyone who had invested in a security that paid off big. It makes for interesting reading or listening.

The public then attempts to follow the same strategy. It’s like trying to get lightning to strike twice or winning a lottery by choosing the winning previous number.

It does create momentum bubbles in the securities market. But never works, unless you get out of the action fast enough. Very few do.


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