For those of you who have lived before the internet, you will fondly recall a time where therewas a set of items called the encyclopaedia. Itwas said that all of the world's knowledge wasfound in it and just by reading it, you could understand the universe. Those were the days where knew so little and felt happy with small discoveries.
No with the advent of the internet, with $Alphabet(GOOGL)$and the explosion of digital initiatives, I am increasingly humbled by how littleI know and how much information comes through with just a small device on the palm of myhand.
Facts
This is one category which I deal with the information that I receive. It's indisputable that I have an ice cream waffle as a picture and it's afact. $Apple(AAPL)$is the largest cap company and that's a fact. iPhones consist of >50% of its revenue and it's a fact.
Opinion
The other category that I use is opinion. This part gets a little tricky. For example you will often read "Next X best stocks to own for the next 5-10 years" or "Look at this huge opportunity". You get it. This is an opinion. Well there's nothing instrincally wrong with an opinion asit just shows another perspective. However if we were to blindly follow opinions, and if things go awry, we only have outselves to hold accountable. Example of opinions include "Waffles with ice cream taste great together". It's neither right nor wrong. Just and opinion. Or " $Apple(AAPL)$will drop in price due to underlying strong headwinds from inflation, logistical challenges and tightening of the consumer belt." Just another opinion.
Story
A story is another category of information thatis so much more powerful. Stories can inspire hope and strike fear. E.g. "That day when I went to look for this ice cream stall with waffles, the queue was so long! I had to wait for it to arrive too. But when the food went into my mouth, I knew the pain was worth the pleasure." Another example would be "Apple has faced so many challenges, list of their CEO, challenges from Android and Samsung, and despite that, succeeded against the odds. I belief that they will do well again." Lovely story isn't it?
Bottom line: Be aware of what you read. Is it a fact, an opinion or a story?What value or effect does it have on you and your investments?
That's all for my sharing this weekend. Hope you've benefited from this. Do share it.
What are some of the most powerful facts, opinions and stories that you have come across in your investing journey?
Love to learn and hear from you.
Happy weekends! [Great]
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