How to sort through the noise when making investment decisions

The Street

Uri Gruenbaum, CEO fo TipRanks, joins TheStreet to explain how to sort though all of the noise when making investment decisions.

Transcript

00:00What are your tips for investors to help them sort through the noise?

00:06You know, so many, like I said, so many websites, so many talkers, so many channels.

00:10Here are a few tips.

00:12First one, stay away from social media influencers.

00:16They're never there to help you, and we know that,

00:19and we know that because we're a company that measures that.

00:21We can tell you what is the performance of every one of them.

00:24Sure, you have some, you know, if there's a trend like what happened with the meme stocks,

00:28or, you know, you have some very trending companies, but put that aside.

00:32Like, never listen to someone you don't know with, I don't know, a shady profile picture.

00:38The second tip that I have is that you need to invest for the long term.

00:43You need to, first of all, make a decision with yourself.

00:45Are you a trader or are you an investor?

00:47Because these are two very different things.

00:49So I'm focusing now, you know, if you're a trader, you have your trading tools.

00:52It's going to be technical analysis, charts, and this and that.

00:55If you're an investor, you need to do two things.

00:57First of all, if you love investing and you're all about reading reports and, you know, processing information,

01:06then you're in the right place.

01:07Just make long-term decisions and invest in good companies.

01:11You know, Warren Buffett once said,

01:13I prefer to buy a good company at a reasonable price than a reasonable company at a good price.

01:17And that's something that goes with me.

01:19If you're not obsessed about investing, but you want to invest in the long term, buy the S&P.

01:24Like, don't even try to build a portfolio because what's the point?

01:28You're not enjoying it.

01:29You don't really know how to do it.

01:31And the performance of ETFs are, like, generally better.

01:35And so someone who is neck deep in information, what is your best piece of investment advice?

01:47To read it.

01:48Like, you know, if you have access to data.

01:50I mean, look, if you're in it because you want to play, fine.

01:52Go ahead, you know, play.

01:53But if we're talking about your savings, you know, if you're doing a big, important investment decision,

01:59then don't underestimate it.

02:01Like, you know, it's a big decision.

02:03You know, you're thinking two hours before you're choosing which movie you're going to see.

02:07And sometimes, you know, people are going to spend two hours to choose, you know,

02:10what they're going to see on Netflix,

02:12but they're going to spend 10 minutes to decide where they want to invest their future.

02:16And so I love information.

02:19Either summarize information that's important for you and make a decision.

02:23And if you don't want to go and buy, you know, go buy the SPY or, you know, another popular ETF,

02:27and, you know, let other professionals do the job for you.

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