Nicolas Darvas on Irrational Investment
on Friday, August 23, 2013Nicolas Darvas Money Quotation saying what seems like perfectly rational activity in the stock market, can appear intensely senseless in other activities. Nicolas Darvas said:
“There is no human activity that I know of to which people have a more irrational approach than the stock market” — Nicolas Darvas
In this quote, Nicolas Darvas is observing that when it comes to the stock market, people often make irrational and emotionally-driven decisions that are not grounded in logic or facts.
By describing the general approach as “more irrational” than any other human activity he knows, Darvas seems to be suggesting that the stock market tends to evoke panic, greed and herd behaviors in investors in a way that overrides prudent analysis and risk assessment.
The quote conveys Darvas’ perspective that the prospects of gains and losses in the volatile stock environment are prone to triggering irrational behaviors, as people frequently abandon objective evaluation of companies and market trends when making investment choices.