Should you follow the crowd when investing?

Warren Buffett famously said that going against the herd was the best way to make money on the stockmarket. But is following the crowd necessarily such a bad thing? Tim Bennett investigates.

Warren Buffett reckons the best way to make money is by being "greedy when others are fearful" and vice versa. But according to three professors at the London Business School (LBS), this is wrong. You're better off being greedy when others are greedy that is, you should buy the most popular stocks and sell the least popular. So are they right?

The case against momentum

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.