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You are here: Home / Investing / Stock Prices: Information or Influence?

Stock Prices: Information or Influence?

Why is this post so small? I have long been thinking of writing short posts, for multiple reasons. One, brevity makes me think harder as I must cut through the clutter and write only what is essential. Two, with considerably reduced attention spans, I risk losing your attention with long posts. Three, it makes my writing task easier. And so, here I am. Starting today, I am experimenting with writing posts that can fit into a mobile screenshot. I got this idea from here.

So, here is my first post that you may download as a screenshot. This should also help you save all my “screenshot posts” without the need to print them (maybe, use them as mobile flash cards), and also share with your friends etc.

Let me know if you like this new format (and if you have ideas to improve). Let me know even if you don’t. ๐Ÿ™‚


Stock Prices: Information or Influence?
In one of his papers on qualities of great investors, Michael Mauboussin writes that investing is an inherently social exercise. Stock prices often go from being a source of information to a source of influence.
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Consider the history of stock market bubbles. As stocks surge, people who own them get rich on paper. This causes envy among people who do not own the surging shares. Their mind shuts down and they end up buying stocks at extremely high prices (even Newton did that!). This feeds the process. Everyone wants to get on board the stockโ€™s gravy train because everyone else is.
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Wise investors do not get drawn into such whirlpool of influence. They ignore the views of others and use their own minds. This is difficult, though, as it requires the trait of not caring what others think of you, which does not come naturally to humans.
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Mauboussin writes that the crowd is often right, but when it is wrong you need the psychological courage to go against the grain.


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Reader Interactions

Comments

  1. Chanchal says

    July 21, 2020 at 12:32 pm

    Love the new format, same wisdom, crisp presentation

  2. Sunil wagh says

    July 21, 2020 at 1:55 pm

    Hello Vishal…this is great way to communicate powerful thought in short note…helps a lot…you can keep detailed views for those who are interested to go through

  3. Sanket Shah says

    July 21, 2020 at 1:56 pm

    Extremely useful, time saver and to the point content. Look forward for more such posts

  4. Eric Grau says

    July 21, 2020 at 3:12 pm

    What ever you do, I find it excellent.
    Regards

  5. Ayush Agarwal says

    July 21, 2020 at 5:02 pm

    Hello Sir, I am an avid reader of your writings. While I appreciate your thought of fitting your posts into a screenshot size which makes it more concise and crisp. It helps me (and I am sure others as well) to delve deeper into a particular subject/concept/idea when you build on that and deliver the message using invaluable references.

    This experiment is great for sharing purposes, a 10/10 for that. But the essence (in the excerpts that you share) of your well articulated posts will be somewhat lost where the readers will definitely learn a lot about the message you want to convey but will have limited insights into how you arrived at that thought. I am sure you have taken this into consideration and the given the level of creativity you possess, you will come up with something interesting.

    A screenshot size message: Please don’t take the excerpts and references away!!

  6. Rakesh says

    July 21, 2020 at 5:31 pm

    Hi Vishal

    I have been reading your post for long now, the bigger posts have quotes from super text and then you draw conclusions which gives them authenticity, a auto validation or reality.

    In short post those gets skipped and it mimics what is being done on social media to catch attention.

    I personally prefer a bit of depth to think over rather than quick reads. I liked your earlier formats better

  7. Kesav says

    July 21, 2020 at 5:43 pm

    Crisp and To the point.๐Ÿ‘๐Ÿ‘

  8. Atul says

    July 21, 2020 at 6:25 pm

    Vishal, like the idea, thanks

  9. prantik Mukherjee says

    July 21, 2020 at 9:23 pm

    i liked it excellent work!

  10. Rajesh Malik says

    July 21, 2020 at 9:23 pm

    It was excellent piece of highly important advice about investment.The new way is unique, more interesting and time saving .

  11. Venkat says

    July 23, 2020 at 10:21 pm

    Great attempt at a screenshot sized article. A few minor suggestions. One, you could try reducing the font size. At the moment, it seems 2 sizes too big.
    The other could be to fit in a infographic or a sketch. Have always loved your sketch snapshots.

  12. Gaurang says

    July 25, 2020 at 11:21 am

    Screenshot size essays is well suited for News. Not for blogging.

  13. Swapnil Kabra says

    July 26, 2020 at 12:14 am

    This is something really cool!
    The screenshot idea can work wonders, especially with shorter retention time of readers.
    I would suggest you to write long detailed posts too and a screenshot that could summarise the post. Wouldn’t that be great?

  14. Tanushree says

    August 5, 2020 at 7:06 pm

    Hi Sir!

    I am a first year student at a college and recently subscribed to your mails.
    It’s amazing that I’m learning so much from the content you publish(I don’t lose my interest, your writing style is great!)

    This is with reference to your recent format of writing lesser so that the content fits a screenshot.

    I would like to express that I prefer the longer mails over the short ones as the longer mails are able to clearly talk and describe events in depth.

    Maybe what you can do is writing two kinds of mails as a type of series- a small one for screenshots and a longer one talking of different topics or knowledgeable stuff.

    Love your content!
    Thank You!

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