This one is mainly for anyone dabbling in equities, but I really liked the intro in a more general way:
I think it rather aptly points to a pet theory of mine: for most of us value is more a function of sentiment than cold fact. From the article this seems to include such austere circles as stock exchanges and investment brokers.IN 1999, I had freshly emerged thoroughly battered from trying to treat the aftermath of the 1998 crash as a midcycle correction. Feeling somewhat sulky, I went off to spend a week doing farm work on a friends cattle and sheep ranch out Kokstad way.
Doing rounds in a bakkie, we stopped very briefly to look at some nondescript item in a field. A few sheep trundled over, thinking some tasty treat was being dished out. More followed. By the time we had driven to the top of the field, a seething mass of several hundred sheep were thundering down the hillside, looking for a tasty treat that wasn't there, and had already left. This of course, was the most penetrating insight into a roaring bull market I could possibly have hoped for.
The trouble with bull markets, of course, is that they are not investment fests, they are social events. Tales of derring-do and "hot tips" abound. Morons become geniuses.
full article by Warwick Lucas at FIN24 here