Beware of crowd-following

I continue the series of great investor aphorisms with guidance on awareness of crowd lunacy.

If forty Wall Street analysts are giving the stock their highest recommendation, 60 percent of the shares are held by institutions, and three national magazines have fawned over the CEO, then it’s definitely to think about selling.

Peter Lynch

What the wise do at the beginning the foolish do in the end. 

                Warren Buffett (B.H. 1994)

Any individual stock does not rise or fall at any particular moment in time because of what is actually happening or will happen to that company.  It rises or falls according to the current consensus of the financial community as to what is happening and will happen regardless of how far off this consensus may be from what is really occurring or will occur

Philip Fisher

To enjoy a reasonable chance for continued better than average results, the investor must follow policies which are (1) inherently sound and promising, and (2) are not popular in Wall Street

Benjamin Graham

Mr Market, is very…………….

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