When the Crowd Follow Trends - Investors Pause

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 I noticed a light-hearted trend on social media recently, AI-generated caricatures. Bright colours, exaggerated features, instantly recognisable as part of a moment everyone is sharing.

Out of curiosity, I tried it myself.

What came back wasn’t brightly coloured or exaggerated. It was black and white. Restrained. More photographic than cartoon-like. All I can say is ChatGPT understands my branding and business.

But it also struck me how closely this mirrors behaviour we see not just in marketing, but in financial markets.

Crowds and Comfort

Most people feel more comfortable doing what everyone else is doing. In social media, that means following trends. In markets, it means buying what’s already popular.

There’s nothing inherently wrong with that. Trends are signals. They show where attention is flowing right now. But attention and value are not the same thing.

Investors Think Differently

Investors tend to pause where others rush. Instead of asking:

  • “What’s popular?” they ask

  • “What’s sustainable?”

  • “What still works when the noise dies down?”

  • “Where is this in the cycle?”

By the time something is everywhere, the opportunity is often already maturing or fading. That’s true in shares, property, crypto, business models… and even branding.

The Cycle Pattern

There are two distinct investment patterns. 

Trends follow a familiar path:

  • early adopters experiment quietly

  • momentum builds

  • visibility explodes

  • saturation follows

  • attention moves on

Value, on the other hand, is usually built:

  • before the crowd arrives, or after the crowd leaves

This is why investors are often labelled “contrarian.” Not because they want to be different but because they understand timing.

A Quiet Reminder

That small caricature experiment was a reminder of something I’ve seen repeatedly over decades in business and investing. You don’t need to reject trends. But you do need to decide whether they serve your system.

In markets, the crowd chases excitement whereas Investors focus on structure, cash flow, and patience.

In business, the loudest approach isn’t always the most effective. Consistency compounds long after the trend passes.

Trends are useful to observe but it is systems that create results. Whether you’re investing, building a business, or shaping a brand, the question isn’t:

“What is everyone doing?” It’s “What still works when they stop doing it?”



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