Listen "Episode #80: If I'm surrounded by like-minded people I could lose my ability to use my mind..."
Episode Synopsis
How do I make the best investment decisions?
This is a question I often get from clients and especially prospects.
Investors should consider the quality of information they receive and the sources.
To invest, you need predictions and forecasts.
To make predictions and forecasts, a financial professional must have multiple sources of information.
The data must be independent and stress tested as new information is revealed.
To tackle this task being good with math is not enough.
We must put the numbers to good use.
Humility is a key component of a good forecaster.
Understanding phycological bias is also critical.
I must plan for both.
In addition, I must pay attention to the wisdom of the crowds as they provide valuable information.
In investing, it is more useful to pay attention to those who disagree with you than those who do.
I continue to seek and study contrarian viewpoints.
If I'm surrounded by like-minded people, I could lose my ability to use my mind.
How do you make investment decisions?
This is a question I often get from clients and especially prospects.
Investors should consider the quality of information they receive and the sources.
To invest, you need predictions and forecasts.
To make predictions and forecasts, a financial professional must have multiple sources of information.
The data must be independent and stress tested as new information is revealed.
To tackle this task being good with math is not enough.
We must put the numbers to good use.
Humility is a key component of a good forecaster.
Understanding phycological bias is also critical.
I must plan for both.
In addition, I must pay attention to the wisdom of the crowds as they provide valuable information.
In investing, it is more useful to pay attention to those who disagree with you than those who do.
I continue to seek and study contrarian viewpoints.
If I'm surrounded by like-minded people, I could lose my ability to use my mind.
How do you make investment decisions?
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