Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 627

Noise cancelling for investors

Investors have never had more information at their fingertips. Newsfeeds refresh by the second, financial TV runs on a 24-hour loop, and social media is engineered to keep us clicking. Even the newest tools of our time, large language models like ChatGPT, can serve up an articulate answer in seconds.

But this abundance is misleading. Most of it is noise — forgettable snippets with a half-life of hours. Headlines are designed not to inform but to funnel us deeper into a product or subscription. LLMs (Large Language Models), for all their fluency, are built to support and flatter our prompts, not to reason with originality or forecast with accuracy. They cannot yet do the one thing that defines good investing: to pause, weigh evidence, and think independently at the second level.

We aren’t ready to hand over the reins of rational, deep, or creative thought. Not yet.

The retreat from noise

The greatest investors of our time understood this long before the digital deluge. They deliberately engineered their environments to cultivate clarity.

  • Warren Buffett chose Omaha over Wall Street so he could think in peace. He still spends most of his day reading quietly, with no interruptions.
  • Charlie Munger built his reputation on inversion — focusing on avoiding folly rather than chasing brilliance. That, too, requires quiet.
  • Nick Sleep and Qais Zakaria, founders of the Nomad Partnership, ran their fund from a small room above a Chinese herbalist in Chelsea, London. They didn’t even have desks or Bloomberg terminals,  just reading chairs. In that simplicity, they compounded at more than 20% a year for a decade.
  • Bill Miller, a philosophy grad and military intelligence officer prior to being a fund manager, thought about markets differently. When the dot-com crash drove the consensus to declare Amazon worthless, Miller tuned out the noise and doubled down. He became the largest shareholder without the surname Bezos, setting off one of the most remarkable market-beating streaks in history.
  • Guy Spier retreated to Zurich, creating what he calls a “temple of calm.” His environment was designed to encourage slow, deliberate thought rather than reactive decision-making.

As William Green describes in Richer, Wiser, Happier, the edge is not in doing more, but in doing less — subtraction. Jason Zweig once wrote to him about Munger, Miller, and Buffett: “Their skill is self-honesty. They don’t lie to themselves about what they are and aren’t good at. Being honest with yourself like that has to be part of the secret. It’s so hard and so painful to do, but so important.”

In other words, these investors protect their minds. They filter out what doesn’t matter so they can focus on what does.

Hagstrom and the art of thinking slowly

No writer has captured this better than Robert Hagstrom, author of The Warren Buffett Way and Investing: The Last Liberal Art. Hagstrom argues that modern markets are awash with static — countless signals generated by traders, algorithms, momentum players, and macro tourists. He borrows from Claude Shannon’s theory of communication: when too much noise overwhelms the channel, the message is lost.

Hagstrom’s answer is not speed but slowness. He urges investors to treat investing as a liberal art — drawing on philosophy, psychology, and history, not just financial models. His practice is one of calm reading, thinking, and synthesising across disciplines. That is the true contrarian act in a world addicted to immediacy.

Or as he once put it: “We are not in the information business, we are in the thinking business.”

Behaviour before analysis

Closer to home, Howard Coleman of Teaminvest makes a similar point: unless you can manage your behaviour, analysis won’t save you. The ability to tune out noise — to avoid being swayed by every market twitch — is the precondition for considered judgment.

Second-level thinking

The distinction is clear. First-level thinking reacts to the market: “The stock is down, it must be bad.” Second-level thinking goes deeper: “Why is it down? Has the intrinsic value changed? Or is this just fear?”

Second-level thinking doesn’t emerge from speed or more data. It grows in environments designed for patience, honesty, and reflection. It requires subtraction, not addition.

The real edge

What unites Buffett in Omaha, Sleep and Zakaria in their reading chairs, Miller in his contrarian conviction, Spier in his Zurich office, and Munger in his relentless inversion is not access to faster information. It is the courage to avoid noise.

Their edge wasn’t derived from consuming more. It was from doing less, more deeply. In the calm, they found clarity. And in clarity, they won.

 

Leigh Gant is the Founder and CEO at Unio Growth Partners. This article is for general information purposes only as it does not consider the individual circumstances of any person. Investors should seek professional investment advice before acting.

 

  •   3 September 2025
  • 2
  •      
  •   

RELATED ARTICLES

Does increasing geopolitical risk lead to higher equity market returns?

Shaky markets, steady mind

The 9 most important things I've learned about investing over 40 years

banner

Most viewed in recent weeks

Indexation implications – key changes to 2026/27 super thresholds

Stay on top of the latest changes to superannuation rates and thresholds for 2026, including increases to transfer balance cap, concessional contributions cap, and non-concessional contributions cap.

The refinery problem: A different kind of energy crisis in 2026

The Strait of Hormuz closure due to US-Iran conflict severely disrupted global energy supply chains. While various emergency measures mitigated the crude impact, the refined product market faces unprecedented stress.

The missing 30%: how LIC returns are understated, and why it matters

The perceived underperformance of LICs compared to ETFs is due to existing comparison data excluding crucial information, highlighting the need for proper assessment and transparent reporting.

Little‑known government scheme can help retirees tap into $3 trillion of housing wealth

The Home Equity Access Scheme in Australia allows older homeowners to tap into their home equity for retirement income, yet remains underused due to lack of awareness and its perceived complexity.

Origins of the mislabeled capital gains tax ‘discount’

Debate over the CGT discount is intensifying amid concerns about intergenerational equity and housing affordability. This analysis shows that the 'discount' does not necessarily favor property investors.

Div 296 may mean your estate pays tax on assets your beneficiaries never receive

The new super tax, applying from 1 July, introduces more than just a higher rate on large balances. It brings into focus a misalignment between where wealth sits and where the tax on that wealth ultimately falls.

Latest Updates

The ultimate superannuation EOFY checklist 2026

Here is a checklist of 28 important issues you should address before June 30 to ensure your SMSF or other super fund is in order and that you are making the most of the strategies available.

Retirement

Two months into retirement

A retirement researcher's take on retirement and her focus on each of her six resource buckets to stay engaged during the transition and beyond.

Superannuation

Markets have always delivered for super fund members. What if they don’t?

What happens if market resilience in the face of ongoing geopolitical tensions ends? Potential decade-long market weakness shows the need for contingency planning.

Retirement

We tend to spend less in retirement …

Studies show that a drop in expenditure during retirement leads to a happier retirement. But when costs ramp up again later in life, it's a guaranteed income that makes spending more hurt less.

Shares

Can you value a share just using dividends?

A cow for her milk, a stock for her dividends. Investors are too quick to dismiss this valuation technique. 

Property

The 25-year property trust default is being questioned

The 33% CGT discount rate being floated isn’t random. It sits at the structural break-even between trust and company for the multi-property cohort. That’s driving the conversation we’re hearing now.

Investment strategies

Are active managers bringing a knife to a gunfight?

How passive investing has permanently changed market structure — and why sophisticated tools are now the price of survival.

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.