It's said that people think with a herd mentality. Almost everyone does or thinks in much the same way as the group, says this line of thought. If the concept of a thinking like the crowd is true, then you can be highly successful by going against what is perceived as conventional wisdom. If people are more independent in their thoughts, then you can be successful in gaining the numerous niche markets opened, by being contrarian to several crowds at once. In any case, thinking and acting independently will be your most profitable course of action.
A good example of group thought was the high technology stock mania of the latter 1990s. At that time, internet based stocks of companies with no products or earnings were being bought at enormous prices. It was thought that the so called New Economy was somehow different from the previous economic rules of supply and demand. Unfortunately for many follow the crowd investors, no one told supply and demand that they had been repealed. Financial disaster ensued as a result.
Another example of group thinking is playing out before our very eyes. Both the mainstream and alternative news media are full of tales of housing market woes. With subprime mortgages and their lending institutions reeling, and the homeowners falling behind in payments as their adjustable rate mortgages take an uppercut, housing prices look ready for a correction as well. If you were a contrarian thinker, you were selling your home at its peak value last year, and pocketing the savings. The same quality of home could be repurchased now for much less money. The prices may go even lower before the correction hits its bottom.
In both instances, thinking like the crowd got the average person into deep trouble. While there were riches to be had, it's true, there were also huge risks being taken in hopes that wealth would appear in the end. Contrarian thinkers were not caught up in the mania, and kept their hands on their wallets, and paid down their mortgages and debt levels. Extracting equity from their homes, and taking that equity out for a walk through the mall, was not on the contrarian agenda. While there may have been scoffing at the peak of the housing bonanza, there is only relief on the part of those who avoided the many refinancing traps.
For business people, seeking an alternative path to business success may appear difficult at first blush. It is understandably very difficult to resist the siren call of following the crowd. When other businesses are laying off staff, it's time to consider hiring more people. If other companies are reducing their advertising budgets, there is no better time to go after their market share. Looking for alternatives, as contary to popular wisdom though they may be, might be the road to success for your organization.
Of course, not every sitaution calls for contrarian thinking, and many people made huge amounts of money during the dotcom boom and crash, and riding the housing bubble. It's also true that many more people lost a bundle, and that was cash that many could ill afford to see fly out the window. Caution and a healthy skepticism can save a tragic loss of capital. In the end, that may be even more important than chasing an ever elusive pot of gold.
Instead of chasing the same hotly pursued rainbows, look in the opposite direction. You will find an open field ready for harvest.
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