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Arm Yourself Well With Information Before Investing

Studying or investing / speculating in publicly listed businesses without being informed is like going to a war unarmed. You are going to bleed during every battle and even if you survive you will be anguished at the end. To give a more modern analogy – imagine odds of getting a job if you don’t prepare at all for interview. On the other side of every trade or opportunity there are folks who are armed with information that can slay you before you even realize. They are also incentivized appropriately to do so.

So, it should be quite obvious to you now that you need to arm yourself with information. However, all kinds of information or having an excessive amount of it is not good idea as it will reduce your agility. There are those you say infinite amount is not enough and others who are mostly ignorant. How do you know then whether you are armed appropriately or not? A good way to decide if you are armed well is making more small mistakes early and fast. Size reduces the overall impact and its easier to retreat or change your course of action earlier rather than later (because every opportunity has a cost).

There are a lot of new participants entering public markets investing, which is going to change the dynamics of the game significantly over near to medium term.

If you are not aware of the changing environment, then too you are not informed well. Things in dynamic games change all the time. Sure you can think of yourself as a David against Goliath (who are literally owners of the world) but realize that David won because of the advantages he had, not just because he was underdog. Awareness of your strengths and weaknesses is key to determine what information do you need to arm yourself with.

We are still baking this thought. How do you think about arming yourself with information before investing? Please feel free to share in comments or by email.