Want to know how Robert learned to classify information in Vietnam?
Robert divides information into five key categories: Time, Credibility, Classification, Relative Information, and Deceptive Information.
Time: Just like in war, things change quickly in business and investing too. What’s valuable today might be worthless tomorrow. That’s why staying updated is crucial.
Credibility: A lot of people take financial advice from coworkers or salespeople who might mean well but don’t really have financial success. Robert stresses that it’s better to learn from sources that are credible and experienced.
Classifying Information: In the military, information is sorted into different levels—some being top-secret and only available to certain people. In business, this is like insider information— knowledge that gives someone an advantage.
Some insider information is illegal, like using secret details to buy or sell stocks, but Robert talks about the importance of getting close to the inside—getting information before it becomes public. The closer you are to the source, the better your chances of success.
In the stock market, amateurs are often too late to act on new information. By the time they hear about a company’s news, professionals have already made their move. Robert explains that professionals make money by acting on fresh information.
Financial intelligence helps you get closer to that inside information, which is key to getting richer. Meanwhile, most people are left behind because they only act on outdated information.
Relative Information: In the military, officers studied past and present enemy movements to predict what might happen next. In business and investing, it’s the same: looking at past and current trends to predict what’s coming next.
Deceptive Information: In war, enemies use tricks to mislead others. They might send fake information or create distractions to confuse their opponents. In business, this is the same—people or companies may mislead others to get ahead.
And he talks about a common trick in investing is called “Pump and Dump.”
A financial expert tells people to buy a stock, claiming it’s a great investment. This causes the stock price to rise. Then, the expert sells their shares at the higher price and makes a profit, leaving others who bought the stock with losses.
Do you know what "Sleight of Hand" is?
Just like a magician distracts you while doing a trick, businesses often distract consumers with one piece of information while hiding something important. For example, a cereal box might say “LowFat,” but when you look closer, it’s actually packed with sugar.
Robert talks about False Advertising in Investing. Let’s find out what it is:
In investing, some ads claim things like “Highest returns of all funds,” but the fine print shows that no one made any money—not even the fund itself. It’s like bragging about catching the biggest fish —but it’s actually a tiny one.
Robert shares lessons from the military on classifying information that apply to business too.
He tells about the difference between facts and opinions, especially in areas like military intelligence and investing.
For example, if someone says a company’s stock will rise, it’s just their opinion, not a fact, because they’re predicting the future. Similarly, calling someone “successful” is an opinion because success means different things to different people.
Robert explains that many people find investing risky because they mix up opinions with actual facts.
To learn more about this, stay tuned!
