The Solace Factor in Investment Markets

I noticed something while I was at ROCKBOTTOM, a nite club at Juhu. There was a group of girls who liked my dance moves and then requested me for a photograph. This changed the attitude of the other girls present at the same nite club. Its the "security factor" or "charm factor" , as is the common thought.

In investment space too, a similar phenomenon is observed! When investors are investing in a new company either through IPO or secondary market, what one should notice is they look out for "who else" has invested in the scrip. Are the so called "investment gurus" a part of the investment crowd for that scrip.....this gives some "solace" and "charm factor" and "smiles" towards the particular scrip in discussion.

So, where do you fall? The first mover, or the observer who makes the later move.