Of Kattappa, IPOs, and Buybacks - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  
The Equitymaster Research Digest

Of Kattappa, IPOs, and Buybacks
May 9, 2017

  • Have you fallen prey to 'Kattappa Syndrome'?
  • Did Baahubali 2 help Apurva bag his biggest winner of 2017?
  • Is the IPO of HUDCO a risky bet?
  • The biggest buyback in the history of Indian capital markets

The 'Kattappa Syndrome'.

Most investors in the market don't know about it.

Buy you should. It could be dangerous for your wealth.

Thanks to Ankit, our readers are aware.

Of course, it has another name - authority bias.

It's the act of blindly following authority...without applying one's mind.

This is a dangerous thing to do in the stock market.

But it is hard to resist.

Especially if everyone else is doing it...and making money. This is called 'social proof'.

Think back to the Reliance Power IPO in January 2008.

What better example of a deadly cocktail of social proof and authority bias?

I still remember the TV ads. They certainly felt authoritative.

To Read the Full Story, Subscribe or Sign In

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms