links for 2011-05-02

…what is required to make money is not a change in the business, but rather a change in the perception of that business. And if you are lucky enough to get both, you can benefit from a double whammy, as the earnings and the earnings multiple both expand. Still, the madness of crowds is what makes the investment business so difficult — which is why it is called investing or speculating, not winning…As unsatisfying as it is to say, on a short-term basis, psychology matters a great deal more than underlying company fundamentals.

A group of Facebook shareholders is seeking to offload $1 billion worth of shares on the secondary market, a sale that would value the company at more than $70 billion, according to five sources with direct knowledge of the situation.