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

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.

Noel Whittaker’s take on the budget

Marketed as a fix for inequality and housing affordability, the latest budget instead delivers a tangle of tax changes that leave everyday Australians worse off.

Australia has no death duties. Technically.

Australia may not levy formal death duties, but a growing web of tax measures is quietly shaping what wealth passes between generations. Now, the 2026 budget adds another layer.

Lithium's rally is real this time – but no-one trusts it

The lithium rally mirrors the early-2010s tech stock surge, with demand set to double by 2030. Supply has been slow to respond, creating a market deficit for future tech like humanoid robotics and solid-state batteries.

Welcome to Firstlinks Edition 662 with weekend update

The debate over the budget is increasingly shaped by frustration and perceptions of unfairness, rather than clear-eyed assessment of policy outcomes.

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.

Latest Updates

Are the government’s CGT changes better for young investors?

New CGT rules promise fairness, but could young investors lose out? A practical scenario reveals how changes impact deposit goals, investment choices, and long-term wealth building for the next generation.

Retirement

How to minimise tax with a will

Inheritance tax implications in Australia may surprise some, as poor estate planning without proper wills or trusts can lead to costly tax bills and delays for beneficiaries.

Investment strategies

AI can’t pick winning funds, but it can help you avoid losers

Machine learning has been touted a game changer investment management. But a new study overturns claims that AI can generate positive alpha in mutual funds. Here are some practical takeaways for investors.

Investment strategies

Inflation BIG picture: Boomers got lucky, next Gen not so much

A 150-year view shows inflation's upward bias, driven by shifting monetary regimes and war stocks. This marks an end to the low-inflation boom that enriched boomers and ushers in a higher-inflation era for younger investors.

Planning

Tax deductibility of financial advice improves affordability

A shrinking adviser workforce and rising costs are squeezing access to financial advice, just as demand surges. Expanded tax deductibility offers a modest but meaningful boost to affordability.

Retirement

Retirement in reality – 3 months in

A reflection on travel mishaps, smart decision-making, time pressures and rebuilding health habits. Three months in, here's how to navigate the surprising realities of life after work.

Taxation

Calculating the business cost of Australia’s new 'productivity tax'

Amid a national productivity crisis, new economic analysis finds the tax changes in the 2026 Federal Budget create Australia’s first-ever by design 'Productivity Tax', where young people will pay the biggest price.

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.