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

How cutting the CGT discount could help rebalance housing market

A more rational taxation system that supports home ownership but discourages asset speculation could provide greater financial support to first home buyers.

Is there a better way to reform the CGT discount?

The capital gains tax discount is under review, but debate should go beyond its size. Its original purpose, design flaws and distortions suggest Australia could adopt a better, more targeted approach.

Want your loved ones to inherit your super? You can’t afford to skip this one step

One in five Australians die before retirement and most have not set up their super properly so their loved ones can benefit from all their hard work and savings. 

Super is catching up, but ageing is a triple-threat

An ageing Australia is shifting the superannuation system’s focus from accumulation to the lifecycle of retirement. While these pressures have been anticipated for decades, they are now converging at scale and driving widespread industry change.

Meg on SMSFs: Last word on Div 296 for a while

The best way to deal with the incoming Division 296 tax on superannuation is likely doing nothing. Earnings will be taxed regardless of where the money sits, so here are some important considerations.

Has Australia wasted the last 30 years?

The 20 years after Peter Costello left Treasury have been deemed wasted...by Peter Costello. The missed opportunities for Australia began long before.  

Latest Updates

Taxation

3 ways to defuse intergenerational anger

With the upcoming budget increasingly likely to include bold proposals to alter the tax code I’ve outlined three incremental steps with fewer unintended consequences.

Economy

Why an extended US-Iran war will punish mortgage holders

The impact of the Iran War is far more than expensive petrol. Higher oil prices have secondary inflationary impacts that reverberate throughout the economy which could be bad news for Australians with mortgages.

Infrastructure

Don’t forget the yield

Global Listed Infrastructure dividends are forecast to grow 5-6% p.a over the next two years. After a hiatus, share buybacks are back on the agenda and will play an integral role in shareholder returns.

Iran war hands politicians free ticket to blame oil prices for inflation

Past oil shocks offer lessons for investors dealing with the fallout from the Iran War and the ongoing impact on inflation.

Economy

Japan 2026: A new PM heralds a new golden age?

Former Australian Prime Minister, Paul Keating, once said "When you change the government, you change the country." We're about to see whether that holds true in Japan.

Investment strategies

Why are central banks moving from US Treasuries to gold?

Central banks now hold more gold reserves than US Treasuries, signalling a shift in safe-haven asset strategy and portfolio diversification as geopolitical risks increase.

Strategy

Has global human wellbeing peaked? What the data reveals

Historically economic progress is measured by GDP growth but there is an increasing body of work that explores quantitative measures of wellbeing.

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.