On Wall Street, information is power. Investors increase their potential to profit by knowing more than the person on the other side of each transaction. But some unscrupulous folks don't stop at simply gathering better intelligence. They aim to cash in by spreading lies that mislead and misdirect ordinary investors like you -- making themselves rich at your expense. With persistence and a little know-how, you can protect yourself, your friends and family, and your money from making these kinds of costly mistakes.

"Show me the incentive, and I'll show you the outcome." 
-- Charlie Munger. (Note that while numerous articles attribute this quote to Munger, we couldn't find any direct, verifiable citations for its original source.) 

Once you've figured out where your information's coming from, you next need to ask who stands to gain from it -- and what they stand to gain.

Continue reading

Source Fool.com