Expert Bust #31 Information Overload

I don't believe in Information Overload. I want more data, not less. But I accept some investors may get confused with the massive range available.

I focus my attention on supply & demand. It's a well-established law of price growth that's been around for 400 years.

I'll admit there are some metrics that can be difficult to classify (e.g. expert bust #1 population growth). So, it's not as simple as it sounds.

But most metrics aren't as deceiving. And so long you look at a large range, if most seem to be in agreement, then that raises more confidence about a suburb's potential.

I don't think analysis paralysis is anything to be embarrassed about. Fear is a natural response to not knowing what the future holds.

The correct response should not be courage. The correct response should be to identify doubts and perform research to address them.

Anyway, here's the easiest and totally free research for novice investors to avoid disaster and it's supported by historical research:

• Don't buy new
• Buy a house, not a unit
• Don't buy near vacant land (greenfield estates)
• Have patience

One really good thing about property is that time covers over a multitude of mistakes.

 

Some excellent points you have made. Education can determine the success of an investor, a lack of it can lead to poor investment decisions which can cost time and money. While supply vs demand should be at the forefront of an investor's search criteria if focusing on capital growth.

 

You're right...but I don't think a little courage hurts. At least initially.

At some point you've got to jump.

 

Imo courage is very important. Many folks who want to invest but don't, lack the courage to pull the trigger. They never get over the fear. Regardless of the amount of data they may have, it's useless if 'uptop' isn't ready to take the leap of faith.

Which brings me back to the extremely important topic of mindset. But that's a whole different story and not for this thread .

 

I agree, that there will always be some people who simply can't jump. But I'd argue the case for "get relevant data" well ahead of "have confidence for no reason".

 

It was 'courage' , not 'confidence' which was being debated.

Imho, without gathering up some level of courage first, most don't get to the ' gathering data' stage at all.


Based on my own experience and that of many I know, building wealth starts with a process that is far from logical and data driven.

The emotional/psychological framework needs to click a few notches first (this often happens subconsciously) before most will take steps to start the process of gathering information to invest.

All goes back to the debate, and importance of having courage.

I'm simply saying the reality for most will be psychological barriers broken, before anything else will take place.

Having courage is very important in that process.