|Investors or zebras? Source: Wikipedia|
Zebras have the same problem as those who are interested in the stock market:
- Both seek profits. Investors want to beat the market - Zebras want to eat fresh grass
- Both dislike risk. Investors can lose all of their money - Zebras can be eaten by lions
- Both move in herds. Investors tend to buy when everyone else is buying, and thus a bubble is created. Many investors also tend to look like zebras in their black-and-white suits.
Investors have the same option. Stay in the middle of the herd and buy boring stocks and you will probably only end up with small profits, or stay outside of the herd where the large opportunities can be found, but where you can end up as lion dinner.
The best option is to be the fat zebra which can also run away from the lions, and the best stock to buy is a risky stock that also can outrun a lion.
Source: Money Masters of Our Time