4. As investors, we, too, are bombarded with signals, many of which are dishonest. Examples include press releases, management meetings and interviews, investor conferences, and earnings guidance. All these signals attempt to favorably impress investors and are generally quite easy to produce. We ignore all of them. 5. We rely exclusively on honest signals from businesses that, as in the natural world, are costly to produce. These include past operating and financial performance and scuttlebutt signals from suppliers, customers, competitors, ex-employees, and industry experts.
