Thoughts, stories and ideas about Value Investing
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In the context of investments, the psychology of crowds refers to how collective emotions and behaviors influence financial markets and investment decisions. Here are key aspects of crowd psychology in investment contexts :
A derivative asset is a contract potentially leading to a future transaction. Its value depends on the value of other more fundamental variables, such as the price of a share or the value of an index.
"$81.5 billion of Warren Buffett's $84.5 billion net worth came after his 65th birthday. Our minds are not built to handle such absurdities." pic.twitter.com/H1V1hyOY86 — Alex & Books 📚 (@AlexAndBooks_) August 28, 2021
"You almost never start valuing a company or stock with a blank slate. All too often, your views on a company or stock are formed before you start inputting the numbers into the models and metrics that you use and, not surprisingly, your conclusions tend to reflect your biases." Aswath Damodaran