Submitted by Scot L. Stark, MBA, CMFC, CFP® on August 5th 2015
If you’ve ever seen it, it’s one of those things you’ll never forget – the mass migration of hundreds of thousands of wildebeest moving across the plains of Africa in search of a fresh feeding area. It’s magnificent to watch. Of course, we know why mammals herd together – it’s because there’s safety in numbers. If a wildebeest traipses off by itself, it is more likely to be picked off by a predator. But, when traveling with thousands of its mates, there’s less of a chance that will happen. But, what works well for the wildebeest doesn’t necessarily work well for humans. True, there still may be safety in numbers, but have you ever seen a herd stampeded off a cliff? Unfortunately, that what happens to investors when they join the herd.