Investment Leadership Lessons From Dancing Guy

Written by Michael Bigger. Follow me on Twitter.

Derek Sivers wrote a great blog post entitled "Leadership Lessons from Dancing Guy". I am mentioning this post in this investment blog because an investor when acting contrary to most investors, stands alone and looks ridiculous. I certainly felt that way when;

1. in 1995, I invested in Innovative Fibers.
2. in 2001, I invested in Amazon.com below $10 while some analysts counted the company for dead.
3. in 2008, we went all in with Crocs below $1.

If your facts are right, the investment thesis appealing, and if you are generous about discussing your investment thesis, a follower will show up. This process could turn one follower into a crowd and this crowd could enhance your catalyst.

What is your take on this video?

Comments

[Arthur Voland]

Great post. But I think even if what you do is nuts all you have to do is pay the first couple of followers to follow and crowd will follow.

[Michael Bigger]

I really like this video. Although the author is not thinking about investment, it is very applicable to investment. Just a great way to see how a crowd forms and how people might feel ridiculous not joining the group once most people are in. So It has application for bubbles, bear market and the catalyst situation.

[Arthur Voland]

It like this quote from "On the Brink" When Prince asked Paulson, “Isn’t there something you can do to order us not to take all of these risks?” I read some of, who knows with what intent these books are written.
Speaking of crowds and paying for followers, I recently realized that if you can create algorithm that would trade apposite of what's written in and suggested on Bloomberg you would be right about 90% of the time. :)) Unfortunately that knowledge cost me a lot.

[Michael Bigger]

You tried it and it did not work?

[Arthur V.]

Nooo, I actually followed what they were suggesting to do with disastrous results. But I can only blame myself for that. It would be better to trade in the woods, or in Omaha :) than when you sit in NYC.

[Arthur V.]

You have to pay for knowledge and the price sometimes is a bit high. I am not sure why people don't share what they know. And after I tell someone that big money is on the opposite side of the trade of whats written there they look at me with bewilderment and say "YOU DIDN't KNOW THAT!" :) But, I am not smart enough to build an algorithm like that.