You Make More Money Selling Advice Than Following It

Discussion in 'Share Investing Strategies, Theories & Education' started by Redwing, 28th Nov, 2019.

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  1. Redwing

    Redwing Well-Known Member

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    Old quote but a ring of truth to it..

    Steve Forbes once said, "You make more money selling advice than following it. It's one of the things we count on in the magazine business -- along with the short memory of our readers." Goldman Sachs showed just how true that is.

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    As Kenneth Ahern and Denis Sosyura said in the introduction to their excellent article, “Rumor Has It: Sensationalism in Financial Media”:

    To win readers’ attention, newspapers have an incentive to publish sensational stories, namely attention-grabbing, speculative news with broad readership appeal. Understanding this incentive is important. Media coverage that is skewed toward speculative stories, possibly at the expense of accuracy, could distort investors’ beliefs and impact asset prices.
     
    Redwing, 28th Nov, 2019
    #1
    Snowball, wombat777 and oracle like this.
  2. bbinvest

    bbinvest Member

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    This is why I stay away from the mainstream news, especially online. It is 99% sensationalist rubbish which I am no better off for having read.
     
    bbinvest, 28th Nov, 2019
    #2