Herd Mentality Questions -

Beyond the Crowd: 50 Critical Herd Mentality Questions to Unlock Independent Thought

  1. Am I investing in this asset because of its fundamentals, or because I see others getting rich?
  2. If the price of my portfolio dropped 50% tomorrow, would I know why without checking the news?
  3. Do I have a written investment thesis, or am I following a “hot tip”?
  4. When a stock is going up, do I confuse a rising price with a smart decision?
  5. Have I ever felt fear of missing out (FOMO) as a primary reason to buy something?
  6. Would I still hold this position if I couldn’t talk to anyone about it for one year?
  7. How many of my financial decisions are based on what my neighbor/coworker did?
  8. When a market crash happens, does my plan rely on selling (herd) or holding (independent)?
  9. Do I trust an expert’s prediction more because they appear on TV often?
  10. What is a popular investment trend that I am avoiding simply because it is popular?

Part 5: Financial & Investment Herd Questions

What level of information do I need to feel confident in formulating my own opinion?

4. "What is the cost of disagreeing here?"

This is a pragmatic question. Sometimes, disagreeing over insignificant things (like which coffee shop to go to) costs you social capital. But often, the perceived cost is higher than the actual cost. Ask yourself: Will I actually be ostracized, or am I just uncomfortable? Herd Mentality Questions