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

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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.

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