The crowd never think independently
It is difficult to think independently when in the crowd. “The crowd tend to lose their judgment and get lost” In other words, if you want to think independently, the best way is to stay out of the crowd. When it comes down to it, group and independent thinking are difficult to reconcile; the two are mutually exclusive.
This is also why I wrote an article called “How difficult to be out of the ordinary“.”Investing is not voting“, but the masses, in essence, are actually a display of voting behavior.
“The Crowd”
The crowd are always blind, especially in the stock market. Gustave Le Bon pointed out in his psychology masterpiece “The Crowd” a hundred years ago. Gustave Le Bon was one of the first people to identify that groups of people, when clustered together, have a collective unconsciousness.
Only when you are alone can you think
Blaise Pascal: “Everyone’s troubles arise from his inability to sit quietly in a room by himself.” (Note: Munger said exactly the same thing) If you can sit for 30 minutes and spend it happily, you are successful.
Munger once said: What brought me great wealth was never my prayers, it was always because I sat still. It is rare to find someone who can be both correct and sit still. The market cannot defeat them, it is themselves who defeat them.
Munger’s view
Charlie Munger once said, “If, in your thinking, you rely entirely on others, often through purchase of professional advice, whenever outside a small territory of your own, you will suffer much calamity.”
Closing words
Related articles
- “In the crowd, it’s impossible to think independently or keep sane“
- “Follow the crowd, a behavior checklist“
- “Thinking cannot be outsourced“
- “The crowd tend to lose their judgment and get lost“
- “How difficult to be out of the ordinary“
- “Investing is not voting“
- “People believe successful investors are survivorship bias cannot succeed“
- “Workplace skills doesn’t help much in investment“
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