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TALKING FINANCE with Justin Baiocchi of Baiocchi Griffin Private Wealth I read it on the internet, it must be true You have probably noticed that one of the features of the internet is the proliferation of user and customer feedback. It seems as though you simply can't operate a website without allowing your customers to post reviews of your product or service. Whatever it is you buy these days, you're encouraged to leave a review. If you like listening to audio books, you can read from hundreds of reviews before making your choice, the same if you are looking for a hotel through one of those online booking websites. There's even a place where you can go online and post a review about your financial adviser! Of course, simply having access to all of this information does not necessarily result in a better outcome. I was browsing a website recently, looking for a talking book to listen to during an upcoming road trip, and of course read through the reviews posted by other listeners. The first reviewer wrote 'great book, but terrible narrator', while the very next review complained about the poor plot but loved the narrator. Who do you believe? For every negative review, there's typically an equally positive glowing recommendation. After reading a few pages of such reviews, you're usually no closer to making a decision, in a state of indecision after being bombarded with so many conflicting opinions. The same information overload exists in financial markets. The benefits or otherwise of any potential investment is effectively simply a matter of opinion, and it's not hard to find views that start with the same information but come to diametrically opposed conclusions. Chat rooms, online forums and even social media platforms like Facebook and Twitter, provide a publishing vehicle for every view, belief or idea, no matter how outlandish, provocative, or indeed, wholly incorrect. The danger is that people make investment decisions based on faulty information, with potentially severe financial consequences. Ending up spending a few nights in a run-down, bedbug ridden hotel, due to believing an overly positive review on TripAdvisor, is a small matter when compared to losing a portion of your life savings on a hot tip you read about on Twitter. Interestingly, the greater the proliferation of potentially damaging information via the internet, the greater the onus on the individual investor to do their own research. Although we now have a seemingly unending amount of information at our fingertips, even more effort needs to be put into separating the wheat from the chaff, so to speak. So next time your interest is piqued by something you've read or seen on the internet, just remember that most six-year-olds have access to an iPad these days - would you trust them for investment advice? BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1, 462-464 Peel St, Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account. You are advised not to act on anything contained herein, or discussed as a consequence of the contents of this document, without receiving financial advice from a suitably qualified person such as a financial planner, lawyer or accountant. Follow us on Twitter @BaiocchiGriffin Find us on f Facebook facebook.com/BaiocchiGriffin Private Wealth www.bgprivatewealth.com.au AW7431078 TALKING FINANCE with Justin Baiocchi of Baiocchi Griffin Private Wealth I read it on the internet , it must be true You have probably noticed that one of the features of the internet is the proliferation of user and customer feedback . It seems as though you simply can't operate a website without allowing your customers to post reviews of your product or service . Whatever it is you buy these days , you're encouraged to leave a review . If you like listening to audio books , you can read from hundreds of reviews before making your choice , the same if you are looking for a hotel through one of those online booking websites . There's even a place where you can go online and post a review about your financial adviser ! Of course , simply having access to all of this information does not necessarily result in a better outcome . I was browsing a website recently , looking for a talking book to listen to during an upcoming road trip , and of course read through the reviews posted by other listeners . The first reviewer wrote ' great book , but terrible narrator ' , while the very next review complained about the poor plot but loved the narrator . Who do you believe ? For every negative review , there's typically an equally positive glowing recommendation . After reading a few pages of such reviews , you're usually no closer to making a decision , in a state of indecision after being bombarded with so many conflicting opinions . The same information overload exists in financial markets . The benefits or otherwise of any potential investment is effectively simply a matter of opinion , and it's not hard to find views that start with the same information but come to diametrically opposed conclusions . Chat rooms , online forums and even social media platforms like Facebook and Twitter , provide a publishing vehicle for every view , belief or idea , no matter how outlandish , provocative , or indeed , wholly incorrect . The danger is that people make investment decisions based on faulty information , with potentially severe financial consequences . Ending up spending a few nights in a run - down , bedbug ridden hotel , due to believing an overly positive review on TripAdvisor , is a small matter when compared to losing a portion of your life savings on a hot tip you read about on Twitter . Interestingly , the greater the proliferation of potentially damaging information via the internet , the greater the onus on the individual investor to do their own research . Although we now have a seemingly unending amount of information at our fingertips , even more effort needs to be put into separating the wheat from the chaff , so to speak . So next time your interest is piqued by something you've read or seen on the internet , just remember that most six - year - olds have access to an iPad these days - would you trust them for investment advice ? BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1 , 462-464 Peel St , Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account . You are advised not to act on anything contained herein , or discussed as a consequence of the contents of this document , without receiving financial advice from a suitably qualified person such as a financial planner , lawyer or accountant . Follow us on Twitter @BaiocchiGriffin Find us on f Facebook facebook.com/BaiocchiGriffin Private Wealth www.bgprivatewealth.com.au AW7431078