📢 A new investor walks into Wall Street. He sees a street vendor selling parrots.
— How much are the parrots? — asks the investor.
— 100 dollars each, — replies the vendor.
The investor buys one. A week later, he comes back, and the parrots are now 200. He buys two more.
A month later, the parrots are 500, and the investor, anticipating profit, buys ten.
The next day, the parrots are already 1000! The investor grabs the phone and calls an old, experienced broker:
— John! Listen, the parrots are a thousand! What should I do?!
The broker calmly replies:
— Sell quickly, before I bring you more parrots for 50 dollars each.
The moral of the story: The market can be irrational, and prices can skyrocket without visible reasons. Experienced investors know when it's time to lock in profits rather than chase ephemeral growth that is often fueled by speculation. The key is to timely understand who is creating this "parrot market".
