The frog: Avoid the trap of tunnel vision

Frog investors tend to read about and keep up with certain business developments selectively, instead of exposing themselves to general industry trends.

Ever heard of the proverb “frog in the well”? It warns of the folly of remaining close-minded and sheltered from the rest of the world.

Applying this proverb to the world of finance, frog investors stick to what they know — only reading about and keeping up with business developments of companies or industries that they have invested in.

Ignoring wider trends in businesses and corporate developments is dangerous as it may result in erroneous investment decisions. Instead of limiting exposure to different viewpoints and information, investors should ideally research to ensure a more holistic view of the investment world.

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