Saturday, September 8, 2007

Information overload and need for simplification...

Today is an information age; but information can turn out to be an asset as well as a liability. Whereas precise information aids in quick and correct decision making; one overloaded with a mix of poor quality information may lead to just the opposite. The key issue is the limited human capability to store and process information at one point of time.

For an average investor, information overload is precisely the problem in stock market investing. There are scores of sources, which claim to give the ultimate recommendation for investment and their number is only growing.

What an individual really needs, is a single unbiased source of recommendations, which gives unbiased view and more correct pointers than the wrong ones, and with a substantial margin. One also needs a Google (simplified) perspective of the market; since the complex models of today are beyond the comprehension level of an average investor.

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