Valuing Information
October 1, 2017
We live in an information age. Data is everywhere. But more information doesn’t always lead to better decisions. In fact, it can lead to paralysis, distraction, and even worse decision-making if not filtered properly.
The Economist recently wrote about the diminishing returns of information. In investing, too much information can make us reactive instead of strategic. We chase headlines, respond to noise, and forget long-term objectives.
We believe the key is to focus on decision — useful information: the kind that affects long-term value and risk. That means filtering out most of the noise — market predictions, short-term price moves, and sensational media stories.
Instead, we look for insights that are rare, relevant, and rigorously tested. That’s what drives long-term success.
Sincerely,
Katz Family Financial