Alan:
You state:
> why are people so passionate about their stocks? I don't think
> the stocks reciprocate their feelings.
You brought up a very interesting point. You see, in a bull market everyone is a winner! In other words regardless of what people pick to buy it will go up sooner or later no matter what! As a result everyone, if keep their patience a little bit, will end up making a buck. This, however, consequently results in an irrational ego! Because everyone is winning everyone starts to think of himself/herself as Peter Lynch, John Templeton, and a great investment mind!. Investment becomes sort of like a fun game and everyone thinks they are right and correct in what they are doing and anyone who disagrees with them simply does not understand the investment world!! Therefore because of this mentality everything becomes so personal and so passionate.
I am not saying that all investors are like that but I can say that the majority of investors (especially the new comers to the market within the past 3-4 years) have developed this special egotistical mentality (thanks to the bull market and a winning economic environment). You can go to any SI threaad (or as you mentioned any investment forum - (from CNBC, to CNN, to even talking with your family members, friends and ....) and as you pointed out the personal passionate feelings toward the stocks indivudals pick do exist strongly! It is sort of like politics during the last few weeks of a presidential election and especially after each presidential debate! And please note that I am not excluding myself either at all, and without knowing you I can guarantee that even if you think about it at times you are personal with your stock picks also. It is natural. However because of the bull market, the degree that this passion/ego exists with some new comers is much much much higher than some old timers.
Just one investors humble view point!
Regards,
Addi Jamshidi |
