It’s easy and safe for most “investment professionals” to stick together and recommend the same things, no matter how foolish. It’s better — for them, though perhaps not for the clients — to be wrong in a crowd than risk standing alone. Few things are more dangerous to investors than a consensus.

“Hot Stocks For A New Decade?” Wait A Minute!, Wall Street Journal, December 20, 2009

I think it’s called social contagion and herd mentality. It’s okay to be dead wrong in a crowd but not have your own opinion and be right.

Notes

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