HRCT as a cult stock
1) Investors buy and never sell.
2) Failures presented as opportunities to buy more.
3) Defectors face attacks, ostracism (remember Houseboater circa 2001)
4) Shareholders seek group approval. Board "leaders."
5) Traditional investing requirements don't apply. e.g. timely audits. clarity
6) Huge % of investors' funds tied up in the cult stock.
7) Sensible diversification or tax loss selling never discussed.
8) Desire to meet other cult members. Huge turnout at SH meetings.
9) Groupthink. "Them Versus Us." Siege mentality.
10) Doubt, and dissent are discouraged or even punished.
Two red flag phrases often encountered with cult stocks:
Long and Strong
Stay the Course
What's wrong with cult stocks? For one thing, they're usually overpriced and therefore poor investments. Economic reality tends to trump fantasy in the long run.
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Because the Good Life is Just a Pump or Two Away
