NJ INSIGHTS â€“ Financial Porngraphy
- By Admin /Personal & corp Investments /2 years ago /301
The difference in how much and what kind of financial information / news existed 15 years ago and now, is just astronomical. It has changed dramatically since the advent of Financial News TV (CNBC etc.). The channels of financial pornography have mastered the art of saying a large amount of something when nothing needs to be said. Now blogs, Twitter and podcasts are taking it to a new level. Good relevant content has become extremely rare.
How can one avoid being a victim of Financial Pornography ?
- Read stuff you disagree with; written by people you respect. Charlie Munger says – a prerequisite to having an opinion is stating the opposing party’s view as well as they can. This is not easy and does not come naturally to us. We will have to force ourselves to do it.
- Read more than just finance. “Investing is not the study of Finance. It is the study of how humans behave with their money”. Knowledge of all kinds of different fields like Psychology, Sociology, Statistics, Biology, History, Politics are essential to become a good investor.
- Old news – study of old news tells us that forecasting economies and markets is nearly impossible. But most people will never stop believing in forecasts. Most of what seems important news in the past was quickly forgotten and the world moves on. Ask yourself will I still care about this news in 1 year ? 5 years ? 10 years ?
The goal of information should be to help us make better decisions towards our planned goals. Then why should we read or see something that does not lead to an actionable takeaway. You should realise most people writing an article or presenting a view have no idea who you are what your goals are. What your situation is, or how will it affect you.
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