Wednesday, April 22, 2015

Financial Thought of the Day April 22, 2015: Greed Interferes With Rational Thinking

My friend and fellow Seeking Alpha writer Michael Hooper cited a compelling quote from Charles Mackay, a 19th century author who wrote “Extraordinary Popular Delusions and the Madness of Crowds”:

"During the progress of this famous bubble (The South Sea Bubble), England presented a singular spectacle. The public mind was in a state of unwholesome fermentation. Men were no longer satisfied with the slow but sure profits of cautious industry. The hope of boundless wealth for the morrow made them heedless and extravagant for today."

Don’t let greed interfere with rational thinking. Invest in companies that demonstrate prudence in its financial affairs and avoid speculative investments.

No comments: