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

Shaky markets, steady mind

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

23 lessons about money and investing

banner

Most viewed in recent weeks

Building a lazy ETF portfolio in 2026

What are the best ways to build a simple portfolio from scratch? I’ve addressed this issue before but think it’s worth revisiting given markets and the world have since changed, throwing up new challenges and things to consider.

Get set for a bumpy 2026

At this time last year, I forecast that 2025 would likely be a positive year given strong economic prospects and disinflation. The outlook for this year is less clear cut and here is what investors should do.

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

Ray Dalio on 2025’s real story, Trump, and what’s next

The renowned investor says 2025’s real story wasn’t AI or US stocks but the shift away from American assets and a collapse in the value of money. And he outlines how to best position portfolios for what’s ahead.

10 fearless forecasts for 2026

The predictions include dividends will outstrip growth as a source of Australian equity returns, US market performance will be underwhelming, while US government bonds will beat gold.

13 million spare bedrooms: Rethinking Australia’s housing shortfall

We don’t have a housing shortage; we have housing misallocation. This explores why so many bedrooms go unused, what’s been tried before, and five things to unlock housing capacity – no new building required.

Latest Updates

Economy

Making sense of record high markets as the world catches fire

The post-World War Two economic system is unravelling, leading to huge shifts in currency, bond and commodity markets, yet stocks seem oblivious to the chaos. This looks to history as a guide for what’s next.

Australia’s generous housing subsidies face mounting political risk

Mark Carney has spoken of a rupture in the rules based system that has governed the world since 1945. That rupture means nations like Australia will need to boost defence spending and find savings elsewhere.

Shares

Finding yield on the ASX

With ASX dividend yields now below government bond yields, investors face an upside-down market where income is scarce, growth is muted, and careful selection of bond-like stocks has never mattered more.

Investment strategies

Digging for value among ASX miners

ASX miners are back in favour after playing second fiddle to banks for years. Is it too late to get in? Here are some thoughts on the large caps such as BHP and Rio, and the hot gold mining sector.

Gold

It’s economic reality, not fear-based momentum, driving gold higher

Most commentary on gold's recent record highs focus on it being the product of fear or speculative momentum. That's ignoring the deeper structural drivers at play. 

Investment strategies

Asia in 2026: Riding AI, reform and a shifting global order

Tariff turmoil tested Asia, but AI leadership, policy easing and reform momentum are restoring investor confidence and strengthening the region’s outlook for 2026. 

Investment strategies

Investors beware: Bull markets don’t last forever

New research explains why high valuations, low dividends and bullish sentiment rarely coexist with strong long-term returns after extended bull markets. 

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.