Investing Lessons from Gresham's Law



Gresham’s Law states that a bad currency drives out the good currency from the market. You can find its functional equivalents in various areas especially in business and investing. The first implication is when bad information drives out the good information. Just like bad information, bad behaviour drives out the good behaviour. If an organization is very casual about unethical behaviour, soon you’ll find that majority of the people in that system have become dishonest. During a bull market, people tend to forget about business fundamentals and a lot of poor quality businesses become center of attraction for majority of the investors. So the Gresham's law of investing says that bad stocks drive out the good stocks from the share market. If you found this video useful, you may want to subscribe to Safal Niveshak's newsletter. www.safalniveshak.com For more details on investing and Gresham's Law, read - http://www.safalniveshak.com/latticework-mental-models-greshams-law/ Download the transcript of this video - http://bit.ly/2gsX6Fp Download the audio(mp3) of this video - https://soundcloud.com/safalniveshak/investing-lessons-from-greshams-law

Comments


    Additional Information:

    Visibility: 1539

    Duration: 3m 36s

    Rating: 36