If you’re an individual with some money to invest, the first thing you need to know if you want to invest intelligently is that you shouldn’t play the Losers’ Game.
What’s the Losers’ Game?
The game that 99.9% of the people who talk about investing appear to be playing: Namely, following global economics and markets and investment advice and trying to make smart decisions along the way.
At this year's Sohn Investment Conference, Dan Sundheim, the founder and CIO of D1 Capital Partners, spoke with John Collison, the co-founder of Stripe. Q1 2021 hedge fund letters, conferences and more D1 manages $20 billion. Of this, $10 billion is invested in fast-growing private businesses such as Stripe. Stripe is currently valued at around Read More
If you play that investment game, you’re almost certain to lose.
And the sooner you understand that, the sooner you’ll be on your way to investing intelligently.
In other words, if you want to invest intelligently, the first thing you should do is ignore 99.9% of what you hear in the financial media.
Because, if your goal is to invest intelligently, what you hear in the financial media is mostly distracting noise that will trick you into making expensive mistakes.
That doesn’t mean that the people in and on the financial media are stupid–they aren’t. It just means that almost everything they talk about is irrelevant (or worse) if your goal is to invest intelligently.
Specifically, you should ignore:
- Market news
- Market forecasts
- Economic news
- Economic forecasts
- Bull/bear debates
- Stock picks
- Stock pans
- Technical analysis
- Quantitative analysis
- Generic “advice” (buy this, sell that)
- And so on…
Even if what you hear in the financial media occasionally proves to be “right,” you should still ignore it. Because as you’ll learn the hard way if you consume enough financial media, there will be no way to tell in advance which of the many things you hear will turn out to be right. And the ones that turn out to be wrong will cost you a lot more money than you will make from the ones that turn out to be right.
So that’s the first thing you should do if you want to invest intelligently: Recognize the financial media for what it is–financial media.