A portfolio manager once told me that half the research on my desk was a complete waste of time. “Figure out which half is garbage and you’ve just doubled your productivity,” he advised.
His point was that most research is backward-looking rather than predictive. Reading obscure financial information may look and feel like productive work, but most of this content has little chance of leading to better results.
With this in mind, I developed the How to Read Financial News series to help investment professionals optimize their reading and better distinguish the narrative from the noise.
For more on this, don’t miss “How to Read Financial News and Set Aside Our Biases,” my Take 15 Podcast interview with host Lauren Foster.
Reading obscure financial information may look and feel like productive work, but most of this content has little chance of leading to better results, says Robert Martorana, CFA. So portfolio managers must learn to read fast and quickly detect nonsense.