Cutting through the noise

We live in a time where information is abundant. The internet has become this fantastic tool, that gives us the opportunity to connect and access information all around the globe. We can read blogs (like this one), and we can gain access to newspaper articles and magazines. We can connect to professional writers and to amateurs. To complete strangers writing on some Reddit boards, or to follow the thoughts of such successful personalities like Warren Buffett.

The amount of information on the net is amazing. But it also creates a lot of noise. We can’t trust everything we read. It’s often hard to differentiate a fact from an opinion. Numbers can be skewed and often require to be verified. And we never truly know the agenda of anyone who puts things out there for others to read. Finding reliable sources is more challenging than ever.

Finding the right information

I spent a lot of time looking for informative sites, that can feed me investment ideas, offer some basic stock analysis, and that have enough followers to know that they actually have an impact when they write something. And (actually not surprisingly) I ended up with a slim selection of mostly professional analysts and journalists.

All this talk about mainstream media and fake news is just that. Talk. But fact is that people who actually work in and for the business still remain the most credible sources out there. Because they learned that stuff. They know how to gather information. They know how to ask questions. They know when something doesn’t “smell” right, and they have the means to dig deeper. They are being paid to do that.

The WIRECARD scandal in Germany would have been on a much smaller scale, if people were trusting more The Financial Times than some blogs and forums which were hyping the stock. Reading the Financial Times is also seriously more educating in the field of finance, even though I don’t like their political stance. The New York Times can give us more accurate ideas about what’s happening in the world than any Facebook forum. And a forum for professional investors like Seeking Alpha can give us much more valuable information than Reddit. I also like to regularly take a look at the finance section of Yahoo! (https://finance.yahoo.com) which is incredibly informative and the last piece of Yahoo! that still has some value to me and to many professional investors.

Verifying is key

But no matter where you do your due diligence, I still recommend to go a step further and to trying to verify the information you read. Are the numbers of the company that you want to invest in really matching up? Go to their investor relations website and download their annual report. Is the new technology they are touting really so revolutionary? Google it and read about it from some sceptic voices. It’s good to know alternatives and other perspectives, and these might actually lead you to other, better ideas.

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