Because the influence of the media is too strong, and investors need to absorb new knowledge and necessary knowledge, various media access is an inevitable way for investors. This article will take a look at the characteristics of the media that modern investors understand and compare their strengths and weaknesses. The most important thing is how much impact it will have on us.
The following types of media are commonly used by investors:
Including TV news, financial TV channels, and financial programs. Since TV has both video and sound, and can be released in real time, it has inherently strong monopoly. The emergence of technology and the Internet has indeed had a considerable impact on the dominance of television in the media; however, financial channels have suffered relatively little damage. The main reason is that financial channels are more specialized fields and hard to be replaced. Regardless of this issue, financial programs have long commented on polarities. It is better to only watch prime time financial news (its real-time and video images are quite irreplaceable), and spend less time watching financial celebrity programs, which are usually full of dramatic effects and tension. Touting stocks, but it will not help investors’ performance, and even broadcast wrong investment concepts. Buffett once jokingly stated that if he turns on the TV’s financial program, he will turn off the sound, and then watch a group of people perform mime on TV with exaggerated and funny expressions.
Radio is a medium that is heavily impacted by technology and the Internet, mainly because radio is rarely the main or monopolistic media among all kinds of media. This is the inherent disadvantage of radio broadcasting. After technology and the Internet, the impact it has received is also a relatively large type of media, and by nature, radio broadcasting is inherently an auxiliary media. One of the major advantages of broadcasting is that it can be used as companion, background, and a media delivery method that does not affect work when driving or working.
Podcasts that have appeared in recent years are also important to the spread of information. Podcasts are a kind of media that is closer to radio broadcasting and have pure sound, but they are mainly presented in a non-immediate way. Because it is non-immediate, more rigorous post-production and revision can be carried out. Basically because of this, some better-produced content is now attracted to appear, but after all, it is a new way of expression, and everything is just getting started.
Although the development of the Internet and technology nowadays has caused fatal survival pressure on traditional paper newspapers, this is an irreversible industry trend, just like what I wrote in my book “The Rules of Super Growth Stocks Investing”, section 5-4. As mentioned in the content of the page, even Buffett must accept this. However, there are still “very few” newspapers. Because they have long-term social trust, professionalism, and regionality, they will not be affected after they are transformed into online subscriptions. The Wall Street Journal is one of the typical representatives of business and stock market. What I want to emphasize here is “long-term professional trust”, because this is an enterprise competitiveness that cannot be established in a short period of time and is difficult to be replaced. It is also due to trust, professionalism, and regionality; it still has an irreplaceable position in the acquisition of deeper topics and important news. This is also the biggest reason why the major newspapers of all countries in the world can survive even though the speed of transitioning to online is very slow.
This is a kind of media that is worthy of all investors and must be devoted to it. Because books are the most important way for mankind to pass on knowledge for thousands of years, no matter what the vehicle is, any changes over time will not change the status of books in human civilization, thought, and knowledge transfer. A few days ago, I also deliberately focused on this topic and wrote a blog article “The Irreplaceable and Necessity of Reading for Investment“. Everyone is welcome to read, and I will not repeat the main points in the article here.
Compared with newspapers, magazines is more an auxiliary in nature. Similar to radio to television. However, compared with newspapers, magazines also have an advantage, that is, their professionalism, because magazines usually only focus on a certain field for reporting. If it is a top-ranked professional magazine, the possibility of being replaced is very low. The emergence of the Internet and technology has indeed caused a fatal blow to the survival of magazines. However, similar to newspapers, top-ranked professional financial magazines can survive even if they are changed to online subscriptions, such as Barron’s, which specializes in reporting on the US stock market.
Almost all well-known companies will run their own blogs, which are mainly used for in-depth descriptions of their products and services, and to make up for the lack of press releases and official website content. Because it is operated by a company, it has official color and reliability of information.
As far as non-corporate personal blogs are concerned, the content of a good blog is no less than a book (to a certain extent, a blog is another kind of book, but the paper book cannot be changed after it is printed. There is no flexibility. Usually need to carry out detailed proofreading several times, publishing must be very careful). But its disadvantage is that because the entry barrier of blogs is very low, the quality is uneven. There are still many highly recommended blogs on the Internet.
Online Media for Stock Investing
Online media is the new birth of traditional media. There will be as many online media as there are traditional media. Most of the online media are born out of traditional media; pure online media (there are fewer that are not born out of traditional media, because media requires long-term operation and the trust of the audiences can survive) is relatively small. It is impossible for modern people to avoid online media. It can make the media more influential and strengthen the immediacy and dissemination power. For investors, online media is more efficient and can directly benefit your investment research work. The principle is to choose carefully, with long-term operations, those who have been highly recognized, professionalism by investors, and professionalism affirmed only. In my book “The Rules of Super Growth Stocks Investing”, section 4-5, I have listed some Internet resources and media commonly used by investors in US stocks for investors’ reference. These professional investment online media almost all have an irreplaceable status.
Don’t bother at all, even if it is passed to you by someone you trust. The reason is:
- Social networks are usually full of erroneous information, tampered information, windy manipulation, unverifiable sources, and spam messages.
- In contrast, social networks are used for casual communication and exchanges. Under any circumstances, no company will announce official news on social networks.
Because the barriers to entry are very low, as long as there is a mobile phone or computer with Internet connection, it is easy to cause uneven quality. But it still has the advantages of archiving and easy access. Readers can take a more conservative and proactive approach, and only go up and search when you need to consult necessary interviews or speeches by specific people. This will protect you from being led by spam, false, or error messages.
When some of the financial media we have contacted mentioned or discussed stock market investment, in order to attract audiences, they emphasized the stories of stock prices, sensational stock surges, and short-term wealth. We cannot blame the media. Without discussing these eye-catching themes, the media cannot gain the favor of the audience, and they cannot survive at all. It is worth reminding everyone that some media will consume a lot of modern people’s time, not only addictive, some will instill wrong investment knowledge. This is one of the reasons why we need to choose the media carefully. Another big reason is that each of us really has limited time, and we must spend time on media that is worth spending time. After all, if you are determined to invest successfully, you need to spend a lot of time on research and analysis.
People are inert and like media with sound and light effects (such as TV and live streaming) because they are fun and addictive. Sound-only radio broadcasts or podcasts is second. Internet articles are third. Traditional paper newspapers and magazines fourth. Even survival is very difficult. The most disadvantaged is the paper book, because it is necessary to concentrate on reading and not to be distracted. But I personally think that the type of media that is most helpful to investors is the opposite of their popularity.
Access The Source
Investors are advised to read the local media of your investment target. No translation, avoid any second handed reports. By doing so, you could be safe on information manipulation, misunderstanding, incorrect interpretation or errors.
I have experienced two cases in past year:
- It’s quite common for local newspaper and media, Shopify (ticker: SHOP) is often written as Spotify (ticker: SPOT)
- PayPal (ticker: PYPL) intends to launch cryptocurrency transactions, which will be promoted to PayPal’s online social payment platform Venmo in the future. However, local financial media reported relevant news as PayPal intends to launch its own cryptocurrency called Venmo.
Shopify and PayPal are both heavyweight companies in the U.S. stock market. Both of them are well-known in U.S. stock market. They have existed for more than ten years. It proves most people know Apple (ticker: AAPL) , Microsoft (ticker: MSFT) , or Starbucks (ticker: SBUX) only. However, these mature companies are impossible to be super growth stocks, in terms of any metrics.
Never Buy Stock Due to News
“Owners of stocks, however, too often let the capricious and irrational behavior of their fellow owners cause them to behave irrationally,” he wrote. “Because there is so much chatter about markets, the economy, interest rates, price behaviour of stocks, etc., some investors believe it is important to listen to pundits—and, worse yet, important to consider acting upon their comments.” In other words, people tend to overreact.
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