Before making an investment it is a good idea to determine if you have an “advantage”. In this episode we go over the 3 types of advantages you should look out for.
- Informational Advantage – do you have access to information that is not readily available to the public? Can you use that information to give yourself an advantage in an investment?
- Analytical Advantage – can you take the information everyone has and analyze it in a more comprehensive way? Are you able to connect the dots to give yourself an advantage?
- Behavioral Advantage – are you able to divorce the emotion from the financial decision making. Can you maintain a logical and rational response to all of the stimulus that comes from making a large financial investment?
