|
|
|
|
|
|
|
We hear colleagues and friends boast about their huge profits with Internet stocks that head for the stratosphere. We start salivating. We want our share of the wealth and we want it fast and easy. That's greed. |
|
|
|
|
|
|
|
|
The bull market and the explosion of easy online trading have made it seem like anyone not cashing in on the bonanza was not getting their fair share of the easy wealth just waiting to be made. |
|
|
|
|
|
|
|
|
We make 20 percent a year return owning mutual funds when things are good. But it feels like it's not enough compared to the 60, 80, or 100 percent returns made by the guy who had the guts to take a chance with AOL, Amazon.com, Yahoo, Inktomi, CMGI, or any one of two dozen other Internet stocks as they were getting going. When the NASDAQ returns 86 percent for the year, as it did for 1999, obviously our expectations go up. |
|
|
|
|
|
|
|
|
As another example, it's tough to be satisfied with a 20 percent return once you've had the thrill of a 150 percent profit in a few hours by "flipping" a hot initial public offering. If you're lucky enough to get in at the offering price before it begins selling on the market, it is an exciting and no-risk way of making a fast profit. And, what's more, there's a nice ego boost in feeling special, having been among those selected to get in on a sure thing. |
|
|
|
|
|
|
|
|
When our expectations go up, it tends to push our behavior more toward greed and risk-taking rather than fear and caution. This will undoubtedly swing back to fear and caution when a prolonged bear market shakes up our security. |
|
|
|
|
|
|
|
|
There are a number of issues related to money that we need to identify to understand why greed exerts the influence it does on our thinking and behavior. Then we may begin to see how the never enough mentality works to push us to reach for more. |
|
|
|
|
|
|
|
|
The Multiple Meanings of Money |
|
|
|
|
|
|
|
|
Money signifies a number of psychological and emotional needs for us that go beyond its use as a medium of valuable exchange. Think of your own personal associations to money. What does money mean to you? If you had just one word to describe it, what would it be? Here are some of the common meanings we attach to money: |
|
|
|
|
|
|
|
|
Financial security. Money providing the security to not only economically survive in the real world but to afford the lifestyle we choose given our skills, ability, education, |
|
|
|
|
|