Sunday, 27 May 2012

Animal Farm

An interesting quote from the movie, Wall street: Money Never Sleeps (2010):

Bulls make money. Bears make money. Pigs? They get slaughtered. 

If you had some knowledge about the financial market, it is not difficult to guess who are the bulls and bears. But who are the pigs waiting to be slaughtered in the market? According investopedia, "pigs are high-risk investors looking for the one big score in a short period of time. Pigs buy on hot tips and invest in companies without doing their due diligence. They get impatient, greedy, and emotional about their investments, and they are drawn to high-risk securities without putting in the proper time or money to learn about these investment vehicles."

Just like those pigs that we domesticated, pigs in the financial market is a great source of food for bulls and bears who are always hungry for returns, as the pigs loses are equivalent to the bulls and bears profit. So, to all aspiring investors out there, don't take short cut and do your homework. Otherwise, you might find yourself on the wrong side of the food chain.


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