All Else Equal: Making Better Decisions Ep66 When (and When Not) To Listen to Investment Advice
Oct 15, 2025
Investment advice is everywhere, but how do you determine what's credible? The hosts dissect internet stock picks, revealing potential red flags like pump-and-dump schemes. They explain why genuine stock pickers often work in funds rather than message boards. The importance of sound financial advice, particularly in areas like diversification and tax planning, is emphasized. The discussion also covers private investment risks, the need for skilled manager selection, and why retail investors should focus on broad diversification instead of chasing trendy stock picks.
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Ignore Message-Board Stock Tips
- Avoid stock tips from anonymous message boards because incentives favor pump-and-dump or low-skill promoters.
- Assume public message-board stock picks are unreliable unless the promoter has verifiable capital and track record.
Where Real Pickers Put Their Skill
- Skilled stock pickers will monetize their ability by managing substantial capital, not posting online tips.
- If someone advertises picks publicly instead of managing money, it's a strong signal they lack real skill.
Use Advisors For Planning, Not Picks
- Avoid financial advisors whose main service is cold-calling stock picks without substantial committed capital.
- Use advisors for diversification, tax management, and retirement planning instead of active stock selection.