"Against these costs must be laid the benefits of crowd membership. As I have said, social approval and prestige are the principal benefits. But one must keep in mind that investment crowds develop precisely because the group’s early joiners and innovators achieved very much above-average investment returns. These above-average returns act as a kind of social beacon lighting the night of investment uncertainty. Every crowd member is attracted by this beacon and motivated superficially by the prospect of duplicating this above-average investment performance."
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