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.
5 thoughts on “Tweets on 2008-01-17”
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..
@Anoop: Ouch!
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! :-(
I was considering it, probably I would not go for it now.
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.