Very apt time to read this book. Though written in 1841, nothing has changed in crowd behavior. I suppose following herd is hardwired in our brains.
But you may wonder that all informations explosion would have changed us but I have serious doubts on that especially if you read works like Predictably Irrational. I have recently read a lot on Behavioral Economics and now have firm belief that all we read in our MBA classes like those beautiful theories on rational behavior does not even apply to lowest of animals let alone apply to most complex of all- Homo spines.
If wondering why I am writing about all this in blog on value investing and value stocks in India, reason is simple as on date I have all given up trying to find value stocks in Indian market. All these FII money is making this value definition absurd. All these crazy guys from defunct economies have target returns like 3-4% while to me in India just to beat inflation it has to 15% atleast( don't believe in government figures of 7-8%). So when I want returns of at least 25% from stocks (it has be atleast that to account for inflation and all scoundrels who go by name of promoter/ management in India) but these FIIs are happy with 3-4%. Someone has to give up and these FIIs run by Ivy league minted MBAs running(ruining may be closer to truth in long term) other people's money to get rich themselves are on high and each riding after one another to pray at sensex. I have little hard earned money to invest so I give up and spend all time to read some great books. Even bought a Kindle. So happy reading till these idiots are over with ruining other people's money.
Happy reading....
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