The Stock Market and the Media: Turn It on, But Tune It Out
by Dick Davis
Investors are faced with a daily barrage of business news. There's keen competition over who can break the story first. The clear inference is that the news matters—that keeping abreast of the news, especially as it relates to one’s holdings, is one of the keys to investment success.
I disagree. I believe one of the worst things that can happen to a long-term investor is to be instantly and totally informed about his stock. In most cases, spot news fades into irrelevance over time.
What’s relevant is what the market decides to do. The news follows the market, not the other way around.
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