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herd instinct

   Also found in: Dictionary/thesaurus, Legal, Financial, Encyclopedia, Wikipedia 0.02 sec.
instinct /in·stinct/ (in´stinkt) a complex of unlearned responses characteristic of a species.instinc´tive
death instinct  in psychoanalysis, the latent instinctive impulse toward dissolution and death.
herd instinct  the instinct or urge to be one of a group and to conform to its standards of conduct and opinion.
life instinct  in psychoanalysis, all of the constructive tendencies of the organism aimed at maintenance and perpetuation of the individual and species.

herd instinct
Etymology: ME, heord + L, instinctus, impulse
the basic need of social animals, including humans, for the companionship of peers and a tendency to find compatibility with the behavioral standards of others in the group.

instinct [in´stinkt]
a complex of unlearned responses characteristic of a species. adj., adj instinc´tive.
death instinct Freud's concept of an unconscious drive toward dissolution and death, in opposition to the life instinct.
herd instinct the instinct or urge to be one of a group and to conform to its standards of conduct and opinion.
life instinct Freud's concept of all the constructive tendencies of the organism aimed at maintenance and perpetuation of the individual and species, in opposition to the death instinct.

instinct
a complex of unlearned responses characteristic of a species.

herd instinct
the instinct or urge to be one of a group and to conform to its patterns of behavior.


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The trouble with this thinking is it is prone to what businessman Warren Buffett calls 'Mr Market' which can be overzealous and under-zealous as the herd instinct takes control of the price.
Investors do tend to have a herd instinct and it may just be that when one sheikh heads for Manchester City, the next sheikh thinks this is a sure thing and decides (quite how, I don't know) that Notts County are the next big thing and he better go out and buy them.
There have been volumes written about psychology of the marketplace and numerous articles, commentaries, newsletters, and books have addressed the twin emotions of greed and fear and how they contribute to a herd instinct or mentality amongst both lay and professional investors.
 
 
 
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