Mimicking the herd invites regression to the mean. The problem is not just that everyone owns the same securities; it's that everyone has internalized the same reasons for owning them, and will therefore sell at the same time for the same reasons.
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It's great if you're a cancer patient, but it's not so good if you're an investor who's banking on 49% or maybe a beat, maybe an update.
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When you're sleep-deprived, you're often the last to know it. People who get six hours of sleep think they're doing just fine, but when you test them, they're performing as badly as people who've been awake for 24 hours straight.
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What controls your aversions and desires controls you. And if that person is not you, it doesn't matter how strong you are, how rich you are, how famous you are, how powerful you are, you are a slave.
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