Institutions like mutual funds often worry that if they disclose their plans to buy a stock, copycats will move quickly and drive up the stock before the purchase is completed.
Sentiment: NEGATIVE
When we look at investing, we always think about 'how defensible is this, how likely is it that somebody is going to copy this.' E-commerce tends to be something easy to copy because it's execution.
Mutual funds have historically offered safety and diversification. And they spare you the responsibility of picking individual stocks.
Promoting a stock is like making a movie. You've got to have stars, props, and a good script.
Mutual funds were created to make investing easy, so consumers wouldn't have to be burdened with picking individual stocks.
One way for investors to protect themselves from a rapid change in the price of a stock is to use a limit order rather than a market order.
Successful investing is anticipating the anticipations of others.
I think those who invest in mutual funds want someone else to do the thinking for them. But the fact that they can move the money around the family of mutual funds just through a phone call lets them feel that they can play tycoons.
Rather than engage in the sort of selective retention that so many investors tend to do and pretend mistakes never happened, I prefer to 'own' them. This allows me to learn from them and, with any luck, avoid making the same errors again.
People are very reluctant to invest unless they know it's going to be a sure thing, and let's face it: film is never a sure thing.
The only thing that scares me in the tech area is that it moves so fast that you have to be ready to invest in 20 things. Because if you just invest in one, next week, somebody has a better mousetrap, and you get taken to the cleaners.
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