Why I don’t follow the Financial News?
Personally, I do not follow the financial news. I won’t know that the market had crashed until a friend tells me.
I remembered that Warren Buffett’s teacher, Benjamin Graham once telling him to look at the stock market as a partner named, Mr Market. He also mentioned that Mr Market is a great partner, but is a lousy advisor. Mr Market had mood swings and would at times price stocks at high price and at times price stocks at low price. If we know that ABC stock is a good price, when we buy it from Mr Market? Of course we should buy it at the low price!
The reason why I don’t follow financial news, is because my judgement may be clouded by the news. Those reporters and advisors on TV are really persuasive… Even though I know that my judgement on a business has been through logical studies, but when these fellows speak on TV, my confidence began to shake… And come on, if you follow news long enough, you know that 95% of the time, these guys are not accurate in their predictions!
So rather than listen to the news, I wait for people to tell me that the market is in a bad shape. There is when I go into the market to look at the price of the stocks I shortlisted. Read carefully, I go in and look at the price, not the news and stories… And when the price makes sense, I grab them at a bargain – sweet!