The Fastest Way To Improve Investment Results

by: Jeff Miller

Summary

Strong investment decisions require eliminating mistakes.

Identify sources that have been unhelpful for a year or more.

Quit reading them!

Here is the key concept: Abandon that which is not helpful!

Background

One of my best friends loved "investing" in baseball. He had an opinion about every team and every game. He also had a happy bookie.

He called me after taking a course in baseball betting. He explained that you could improve your results, regardless of your system, by refusing any team that had lost the day before. The course provided the evidence, and it was right. Systems all did worse when recommending losing teams.

I could not resist. I told my friend that if he also passed on all plays involving teams that won the day before, he would have a great system!

Investment Advice

Investors flock to websites providing the least helpful information. The writers are making a fortune without ever providing a single constructive or profitable idea! They collect by preying upon your fears and providing confirmation for your existing biases.

This is a brilliant business model. It is much better than mine, since I must try to explain the contrarian side, provide evidence, and highlight good ideas.

Here is a suggestion for readers hoping for better results:

Review each source you regularly follow. If you cannot find some helpful advice in the last year, cross it off your reading list. If there is not a single stock recommendation that worked, put the site on double-secret probation!

Conclusion

This brief post might be the best piece of investment advice you will ever see. Most will continue their old habits. They love horror stories and lust for confirmation of their biases. You can choose to be different.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.