Check Your Sources: Biased Information Can Lead You to Ruin

Good read…short and to the point (nothing new but a nice repeat of common sense).

Click Here To Read: Check Your Sources: Biased Information Can Lead You to Ruin

Introduction (via Dave  Manuel)

What if I told you that the National Associations of Realtors, which has a vested interest in seeing real estate values head higher, released a report stating that they expect real estate values to increase by 5% this year? If you were smart, then you would take this information with a grain of salt, as the National Association of Realtors will ALWAYS have a sunny outlook for the real estate market, no matter what.

What if a very successful friend of yours told you to buy Google because it was a very good value right now in his eyes? Based on his track record, and based on the fact that he couldn’t possibly be benefiting from telling you this information (Google is a $200 billion company), you would be wise to at least investigate Google as a possible investment.

What if your broker called you up and was imploring you to move your assets out of bonds and cash and into the equities market? What if he said that he anticipated a “50% upwards move in the next 12-18 months”? Seeing as how he would generate commissions from you moving your portfolio from bonds/cash to stocks, you would definitely be wise to be cautious.

Important Excerpt (via Dave Manuel)

You need to be able to organize and sort all of this information in your head, complement it with your own due diligence and then develop your own informed opinion.

If there is anything that the last 2-3 years have taught us is that “experts” can be wrong too – very, very wrong.

Nobody will guard your money and investments with more care than you will.

Click Here To Read: Check Your Sources: Biased Information Can Lead You to Ruin