With so much financial information at our fingertips, it can be hard to sort through the noise. Uri Gruenbaum, CEO, TipRanks, joined TheStreet to discuss how to make informed investment decisions amid the information overload.
Related: How TipRanks wants to help “Average Joe” investors
Full Video Transcript Below:
CONWAY GITTENS: And so then what are your tips for investors to help them sort through the noise. So many, like I said, so many websites, so many talkers, so many channels?
URI GRUENBAUM: Here are a few tips. First one, stay away from social media influencers. They're never there to help you. And we know that. And we know that because we're a company that measures that we can tell you what is the performance of every one of them. Sure you have some if there's a trend like what happened with the meme stocks or you have some very trendy companies, but put that aside. Like never listen to someone, you don't with a shady profile picture. The second tip that I have is that you need to invest for the long term. You need to first of all, make a decision with yourself. Are you a trader or are you an investor. Because these are two very different things.
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So I'm focusing now, if you're a trader, you have your trading tools. It's going to be technical analysis charts and this and that. If you're an investor, you need to do two things. First of all, if you love investing and you're all about reading reports and processing information, then you're in the right place. Just make long term decisions and invest in good companies. Warren Buffett once said, I prefer to buy a good company at a reasonable price and a reasonable company at a good price. And that's something that goes with me. If you're not obsessed about investing, but you want to invest in the long term, buy the S&P. Like don't even try to build a portfolio because what's the point. You're not enjoying it. You don't really know how to do it. And the performance of ETFs are like generally better.
CONWAY GITTENS: And so someone who is neck deep in information, what is your best piece of investment advice?
URI GRUENBAUM: To read it. Like if you have access to data, I mean, look, if you're in it because you want to play. Fine go ahead, play. But if we're talking about your savings if you're doing a big important investment decisions, then don't. And don't underestimate it. It's a big decision. You're thinking two hours before you're choosing which movie you're going to see. And sometimes people are going to spend two hours to choose what they're going to see on Netflix, but they're going to spend 10 minutes to decide where they want to invest their future. And so I love information. Either summarize information that's important for you and make a decision. And if you don't want to go and buy go buy the SPY or another popular ETF and let other professionals do the job for you.
