Is More Knowledge Really the Key to Investing Success?

We live in a world where financial information is just a swipe away.

YouTube channels, blogs, social media pages, and even WhatsApp groups promise “insider tips” and “sure-shot” strategies.

On the surface, it feels empowering—finally, everyone can access knowledge that was once reserved for professionals.

But pause for a moment: has this flood of information actually made investors wealthier?

The uncomfortable truth is that more information doesn’t always lead to better results.

In fact, too much of the “knowledge” floating around is not just useless—it can be downright dangerous.

So the real question we should be asking is: does investing success come from learning more, or from unlearning what doesn’t work?

Table of Contents:

1. Have We Moved from Scarcity of Information to Overload?
2. Does Knowing More Lead to False Confidence?
3. Why Is Unlearning More Important Than Learning?
4. Are Derivatives and Charts Creating an Illusion of Expertise?
5. Why Does Complexity in Finance Attract Us So Much?
6. If Buffett’s Advice Is So Simple, Why Don’t More People Follow It?
7. How Can You Apply ‘Knowledge by Subtraction’ in Your Investing?
8. The Final Word: Why Subtraction—and Guidance—Matter Most

1. Have We Moved from Scarcity of Information to Overload?

Three decades ago, investing in India was a completely different ball game.

Most households didn’t even know what a mutual fund was. Investors were busy figuring out the basics: What’s an NAV? How does an SIP work? Back then, the challenge was financial awareness.

It was like teaching a child the alphabet—everything started with “A.”

Fast forward to today, and the scenario has flipped. We’re not struggling with scarcity anymore—we’re drowning in information.

Every scroll, every video, every tweet tells you something new. But here’s the catch: how much of this is accurate, and how much is noise?

Instead of clarity, many investors end up with confusion. And in that confusion, costly mistakes are born.

2. Does Knowing More Lead to False Confidence?

Think about it. When you scroll through finance content, what do you see?

Discussions about option Greeks, candlestick patterns, Bollinger Bands, and intraday trading strategies that promise overnight riches.

Impressive terminology, right?

But here’s the million-rupee question: does knowing complex jargon translate into long-term wealth?

The numbers tell a painful story. SEBI data shows that nearly 9 out of 10 retail traders in futures and options lose money.

That’s not a small margin—it’s a landslide. Clearly, knowing more doesn’t always mean earning more.

Instead, it creates false confidence—the belief that you’re in control when, in reality, the odds are stacked against you.

3. Why Is Unlearning More Important Than Learning?

When you start from zero, learning is straightforward. You build knowledge step by step.

But when you start with misconceptions, the journey becomes tricky. The first step isn’t about adding—it’s about subtracting.

Ask yourself: is it harder to learn something new, or to admit that what you believed for years was wrong?

Unlearning requires humility. And in investing, humility is rare.

Yet, letting go of myths like “quick trading makes you rich” or “the market can be timed perfectly” often opens the door to real growth.

In other words, subtraction—not addition—unlocks the path to sustainable wealth.

4. Are Derivatives and Charts Creating an Illusion of Expertise?

Options, futures, candlestick charts, Bollinger Bands—the list is endless.

Investors dive deep into these, proudly believing they’ve “decoded” the market.

But here’s the hard truth: how many of these traders actually build lasting wealth?

Very few. Because wealth creation doesn’t come from predicting what a stock will do in the next 15 minutes.

It comes from owning businesses that grow over years and decades.

Think of it this way: charts and patterns may look scientific, but without understanding company fundamentals, they are like building castles on sand.

They might stand tall for a while, but the next wave wipes them away.

So, ask yourself again: is your goal to look like an expert today, or to actually be wealthy tomorrow?

5. Why Does Complexity in Finance Attract Us So Much?

Because complexity sells. Financial media loves to highlight algorithmic trading, cryptocurrency speculation, and exotic products that sound futuristic.

It gives people the illusion of being “in the know.” The more complicated it looks, the more valuable it feels.

But here’s the paradox: the real principles that build wealth—buying quality businesses, diversifying across assets, and staying invested through volatility—are surprisingly simple.

They don’t make sensational headlines, yet they’re the quiet engines that create fortunes.

The trap is clear: the more we chase complexity, the further we drift from the fundamentals that actually work.

6. If Buffett’s Advice Is So Simple, Why Don’t More People Follow It?

Warren Buffett’s investment wisdom is often dismissed as “too old-fashioned.”

He says: focus on good businesses, buy them at fair prices, and hold them for the long term.

No crypto buzzwords, no trading algorithms, no rocket-science formulas.

So why doesn’t everyone follow it?

Because simplicity feels boring in today’s noisy financial world. Complexity feels exciting; it gives the illusion of control.

But Buffett’s wisdom endures because it strips away everything unnecessary.

His philosophy passes the test of subtraction: what remains after you remove the noise is what truly matters.

7. How Can You Apply ‘Knowledge by Subtraction’ in Your Investing?

The practical question is—how do you, as an investor, put this into practice?

• Stop chasing “hot tips” and instead focus on fundamentals.
• Unlearn the myth that trading is equal to wealth creation.
• Recognize that more jargon doesn’t mean more clarity.
• Always pause to ask: “Is this idea really adding value, or just more noise?”

The secret isn’t about adding layers of sophistication—it’s about peeling them away.

The less clutter you carry, the clearer your investment decisions become.

8. The Final Word: Why Subtraction—and Guidance—Matter Most

Unlearning is never easy. It demands courage to question long-held beliefs and discipline to cut away the noise.

That’s why many investors keep falling for complexity—because subtraction feels harder than addition.

A Certified Financial Planner (CFP) can be a valuable guide here, but remember—the ultimate responsibility still lies with you.

The truth is simple: wealth isn’t created by chasing every new formula or prediction.

It’s created by focusing on the fundamentals, staying consistent, and letting time do its work.

In the end, what you remove from your financial thinking often matters more than what you add.

So ask yourself—what misconceptions are you still holding onto?

Because in investing, just like in life, what remains after subtraction is where real clarity and lasting success are found.