Ignoring the noise can be difficult in the world of investing. However, it’s important to remember that no one else has your exact investment strategy, timeframe, and goals in mind. You are the only one who truly cares about your long-term wealth creation and financial objectives. Don’t give up your independence and decision-making power to outside influence.

Being an independent investor is crucial to long-term success. If you don’t know what you want or what you’re looking for, someone else will decide for you. The financial market can be unpredictable, and there is a lot of noise created by various media outlets, companies, and subscription services that are financially motivated.

The best way to control somebody is to encourage them to be independent.

Marcus Aurelius

It’s important to be aware that much of the information related to investing that you come across may not be very helpful. Therefore, it’s a good idea to approach such information with a healthy amount of scepticism. What matters the most is where the information is coming from, and who the source is. It’s important to consider the motivations behind sources.

Ignoring the Noise of the Vast Investment Universe.

The investment universe is massive! Endless it seems. There are tens of thousands of funds operating and thousands of websites with various data sources. Thousands of headlines about markets, the economy, inflation, interest rates, recessions, booms, busts you name it! Ignore 99.99% of it.

This blog encourages scepticism when conducting investing research or generating ideas. It is important to examine claims and look for investing opportunities. It is not recommended to blindly follow someone’s advice. Even if someone claims to have the best ideas or stock picks, it is better to vet them with an independent outlook to ascertain if and how they fit into our broader investment goals.

This blog shares independent ideas without any personal agenda. There is no incentive for me to mislead people as I cannot profit from it. I write to share experiences, encourage readers to think, and share knowledge that I have learned over time. Writing also helps me test my own biases in an ongoing journey to improve every day. I gain the benefit of writing out ideas to understand them better.

Ignoring the noise can also be applied to this blog. If it does not resonate, provide helpful ideas and encourage you to be better…why follow it? Free your mind up.

Don’t outsource your thinking.

Exposure to excessive noise can potentially trigger anxiety and affect decision-making abilities. Filtering out the noise helps to focus on the essential information that is required.

For instance, I am a member of various groups, websites, and investment products. Over time, I have managed to sift through what is useful to me. Although I value the resources I use, I still take a moment to consider every idea that comes my way.

There are investment services that send out timed emails that correlate with company announcements to inflate prices temporarily to offload shares. If you believe that such practices do not exist and everyone is honest, then maybe the market is not for you.

If you are independent, and you receive such an email or hear of such an idea, you should check the company’s profile and how it aligns with your investment philosophy and portfolio. You should avoid blindly accepting an idea based on one source but instead practice second-level thinking.

In Summary…

As an investor, it’s important to cut through the noise and remain independent. This means taking a step back and conducting your own due diligence. It’s easy to get caught up in the opinions of others, but it’s crucial to ask yourself important questions, like what the incentive is and how it fits into your bigger life plan.

Many investors make the mistake of outsourcing their thinking and relying solely on the opinions of others. However, the process of identifying the right companies to add to your portfolio should never be left to someone else. It’s important to gather ideas and receive pragmatic advice on valuations or investing styles, but it’s equally important to independently test and question them before taking any action.

By ignoring the noise, remaining independent, being sceptical, and not outsourcing your thinking, you can make informed decisions that align with your goals and values as an investor