People are more attractive if other people find them attractive. That is our Monkey Brains going at it now. At least it is a more evolved response than the lizard brain from the gym. If our “Tribe” approves of something, it verifies our impression, increasing our estimation of its value. That is true whether it is a prospective mate, sleeping location or investment target.
Money doesn’t care if you find it attractive and neither do investments…
So two rules:
1. Don’t make decisions based on your heart rate (or other emotional states). Easier said than done. Almost all investors act out of emotion rather than calculation and planning.
2. Make a plan and stick to it; even after you get punched in the face…and you will get punched from time to time.
If you invest based on observed or expected popularity, just be aware you are far more exposed to other investors emotions than you are to the factual results of the business.
These rules could each be a book on their own – maybe someday I’ll actually write them.