Headlines making you feel anxious?

January 24, 2013 § Leave a comment

Apple Inc.

Apple Inc. (Photo credit: marcopako )

Apple misses iPhone forecasts; shares skid 10%When I saw this headline yesterday, I had to a laugh for two reason:

Apple naysayers (i.e., gurus) will have a field day claiming they were proven right; the stock is in “decline.”

  • Investors looking for the “best” investment will tell themselves that Apple’s time has passed.

Gurus and their guesses make for great headlines. But here’s the part that the headlines (and the gurus) glossed over:

Apple is a ginormous corporation that just set company records for revenue, earnings (barely, and that’s the worry for some investors), iPhones sold, and iPads sold in a quarter.

Think about that for a minute. Apple’s stock didn’t drop because they revealed some horrible news like a ship sank with the next 20 million iPhones on board. Instead, the price drop was attributed to Apple not meeting analysts’ forecasts.

And this is the trap that trips up gurus and investors alike. Focusing on a single detail rarely gives you enough information to make a decision. By focusing on the individual trees instead of the forest, we don’t stop to ask the questions that should matter, like:

  • Does owning Apple stock make sense based on my plan?
  • If I own Apple stock, do I have a plan that takes the emotion out of owning it?

So the next time you see a headline that touts a guru’s prediction or hints that something great no longer is, do me a favor. Take a look around and see if the headline actually helps you answer a question that matters or just makes you feel more anxious.

by:  Carl Richards taken from The Behavior Gap


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