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 â€” Just Not Their Emissions
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 donâ€™t think anybody has a clue of why they are investing.
The first comment is proof enough. QED.