News has changed. Where we get it. How we get it. When we get it. This has implications for you not only as an individual, but also as an investor.
How has news changed?
Not that long ago, I read five daily newspapers, a couple weekly newspapers, subscribed to 23 magazines, and read a couple of books a year. Times they are a changing. One of those newspapers now only exists online. In fact, most of my daily reading has moved to the Internet. The one hard copy newspaper I do read, The Seattle Times, seems to grow smaller every day.
What does this Internet shift mean?
It means real time information. It means immediate public response. It means broadening awareness, international communication, and a globally aware world.
Take for example the death of peaceful demonstrator, Neda Agha-Soltan, on June 20, 2009. Recorded on a mobile phone and uploaded to the Internet, it spread virally across the globe through Twitter, Facebook, and YouTube. It was picked up by major new channels. In the past, in the pre-mobile device era, this event might have received a paragraph in your local tribune. Today it’s live, international news.
How does this affect you as an investor?
Increased amounts of information, available almost instantly, means faster market shifts. It requires you to stay dialed in to what is going on. I’ve said it before and I’ll say it again – I don’t believe in buying stocks and sticking them in a drawer. I believe successful investors need to follow their investments closely.
On the business side of things, successful companies are also dialed in to what is happening and how their customers are responding. This requires them to know how and when their customers are getting their news. Are they using a smart phone? Are they on their computer? Do they prefer to answer text messages? Or do they only have a landline?
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I want to hear your opinions; please leave a comment below and let me know your thoughts.
