Picture this scenario; you’re on a date at a fancy restaurant. The waiter comes up and in an attempt to appear sophisticated you order oysters. Your date declines and says; “I had to dissect one during my study and once you’ve searched for the reproductive organs of an oyster you stop enjoying them as food.” Just like that your appetite disappears!

For those with pets, have you ever imagined how filthy it is to have a cat sleep in a bed? Suppose you put the part of the bed where it sleeps under a microscope, you will be disgusted at what you will find! I bet your cat doesn’t seem too cute or cuddly anymore.

What am I driving at?

Having all the information might sound like a good idea. Indeed, knowing who your competitors are can be useful. Sometimes however, it helps to not know. To not know what your competitors are doing or how far you are behind. Sometimes ignorance IS bliss. Otherwise, you can always find a reason to NOT do something.

This is also true when it comes to investing. Involve too many people or think about it long enough and pretty soon you will have plenty of reasons not to do something and you will have lost the energy to just charge ahead.

Don’t get me wrong, analyzing a security before investing your money is good. There are always hidden risks. Over-analyzing, however, will shift the aim from learning about the security (to see whether it is possible to gain from it) to looking for flaws so as not to invest in it. We all need to strike a balance.