Very recently an inspiring article by value investor Chris Mayer was published . He recalls, in a very candid manner, some of his interesting experiences with Wall Street analysts.
As it turns out, even the brightest of minds tend to lose rationality when faced with peer pressure. Warren Buffett terms this kind of behaviour as following the 'institutional imperative'.
Though Mr Mayer's opinion pertains to Wall Street people, it applies just as perfectly to all the financial boulevards of India.
He points out some very simple yet powerful lessons for investors.
One, it is best not to subscribe to any crowd. Stock markets are certainly not a place to find safety in numbers.
Which way to go then? Follow your own investment approach. Of course, this is not going to be easy.
There will be times you will see others cheering a trend and even making some quick bucks riding it. That may put seeds of doubt in your mind about your abilities. There will be times when you feel like a fool. But hang on to the basics of value investing.
Be disciplined. There is nothing that can stop wealth from pouring into your treasure chest.