Tweets on 2008-01-17

by Vinaya HS on January 17, 2008

in Finance

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Crowds consists of irrational, emotional humans. We are slightly-cleverer pants-wearing monkeys. We do very dumb things when pursuing the bananas. We have not evolved to understand capital market risk. We are optimistic by nature, and tend to ignore the negative, until its staring us right in the face and cannot be denied. Then, we (irrationally) panic.

Source: The Big Picture.

Do you see the madness surrounding the Reliance Power IPO (Initial Public Offering) being described here? More importantly, did you apply? If yes, why? If not, why not? I didn’t because I have contrarian thoughts about Reliance Power.

And here’s an interesting thought: Indian Power IPO Cleans Up — Just Not Their Emissions

Update:

From an interview on Moneycontrol:

90% of people or probably more than that are applying in the IPO only because of the name Reliance attached to it and may be the kind of unprecedented bull run they are seeing. Other than that I don’t think anybody has a clue of why they are investing.

The first comment is proof enough. QED.




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 5 comments… read them below or add one }

Anoop January 17, 2008 at 11:21 AM

Is this the Reliance share’s thing which is up & running in bangalore?? because my parents asked me to send them 2000$ and I did, reason given was if you invest 50,000 in these Reliance shares now, it increases 3 times i.e. to 1,50,000 in 3 months..or some shet like that.. I trusted my parents and did something, hope its not a loss..

Vinaya HS January 17, 2008 at 4:10 PM

@Anoop: Ouch!

Anoop January 18, 2008 at 6:50 AM

No No don’t tell me I’ve done somthing out of Naivity! because it was my parents who asked me to send money! & I trusted my dad when he told me to send him money. No! I had confidence in him that he would invest wisely! :-(

Vijaya K January 19, 2008 at 4:40 PM

I was considering it, probably I would not go for it now.

Vinayak January 20, 2008 at 1:50 PM

I don’t know what satisfaction you are getting by doing all this bashing and WTF Mate kinda posts. Wanted to write a lot about this particular post, but I will instead talk to you than write here.

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