Home Value Investing Things Value Investors Don’t Care About

Things Value Investors Don’t Care About

When you purchase through our sponsored links, we may earn a commission. By using this website you agree to our T&Cs.

One of the biggest challenges for investors is filtering out bad, useless, or even costly “information.”  I have a method for screening out the noise and using my time more effectively.  Part of it is keeping the TV on mute and using TIVO to check out anything that is really significant.  You can also just skip articles that obviously do not meet the test.

Here is a good starting list of what to ignore.  Feel free to suggest additions.

  • The Hindenburg Omen – or any other method using BO (i.e. backtested overfitting) and failing the smell test.
  • Commentary from people who are famous for being famous – their websites confuse media appearances with credentials.
  • Tobin’s Q – a great idea fifty years ago, but not relevant for modern companies.
  • Bond guys opinions about stocks – don’t ask your barber if you need a haircut (Warren Buffett)
  • Stock guys opinions about bonds – see above.
  • PMI data lacking multiple business cycles – you have to start somewhere, but we do not need to believe it.
  • Recession predictions from some “expert” who cooked up a model last week – too few cases, too many variables.

You can save many hours and also avoid some bad decisions by rejecting this useless and harmful noise.

[drizzle][/drizzle]

Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Want Financial Guidance Sent Straight to You?

  • Pop your email in the box, and you'll receive bi-weekly emails from ValueWalk.
  • We never send spam — only the latest financial news and guides to help you take charge of your financial future.