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+--- Thread: Quotes for the Day - Information Bias (/showthread.php?tid=2157)
Quotes for the Day - Information Bias - Scooterd - 01-22-2022
Investors are bombarded with useless information every day, from financial commentators, newspapers and stockbrokers, and it can be difficult to filter through it to focus on information that is relevant. Daily share price or market movements usually contain no information that is relevant to an investor who is concerned about the medium-long term prospects for an investment, yet there are entire news shows and financial columns dedicated to evaluating movements in share prices on a moment-by-moment basis.
"In general", investors would make superior investment decisions if they ignored daily share-price movements and focused on the medium- long term prospects for the underlying investment and looked at the price in comparison to those prospects. By ignoring daily commentary regarding share prices, investors would overcome a dangerous source of information bias in the investment decision-making process. - Hamish Douglass (Magellen Group)
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"Price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times he will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies".- Benjamin Graham, The Intelligent Investor
"Don’t pay too much heed to the daily ebb and flow of the markets. In the short run, people get excited and stocks get way overpriced. Then a sell-off happens, the stock price goes down, and that sends [price-earnings ratios] lower. The long-term investor should pay no attention to that. The stock market is a distraction to the business of investing".- John Bogle
RE: Quotes for the Day - Information Bias - Dividend Watcher - 01-24-2022
Excellent post, Scoot. I've found the best returns and least anxiety when I follow these maxims.
RE: Quotes for the Day - Information Bias - fenders53 - 01-24-2022
I enjoy the talking heads commentary but I shut it off when all hell breaks loose like now.