“The only relevant test of the validity of a hypothesis is comparison of prediction with experience” ~ Milton Friedman
Do you have practice of compare things before making any serious decisions that probably influence your finance or money? If you haven’t, I strongly feel you are missing some great chance to get more value to your decisions. Comparing things have both, good and worst effect but, it depends on situations. In this article, I will tell you the real power of the magic word ‘comparison’ and how it works for you in a better way. This could help us to take right decisions.
Whether you are an investor, financial planner or an ordinary individual, you could not or never able to forget the power of ‘comparison’. Comparison can play huge influence to your decisions. You may aware or not, but it is the truth. Whenever someone takes any decision, comparison plays huge roles to its success with the knowledge of him or not. Below are some examples, shows how comparison helps people to take proper decisions at their various actions.
The Role of Comparison to Make Successful Decisions
Investment – Before taking any investment decision, we generally research about the product or business. Major portion of it can be done only though comparing its features, prices or qualities with its peers or competitors. This would bring us to a fair level to take proper decisions.
Mutual funds – Comparative study plays huge roles when selecting a mutual fund to invest. From the experience of successful mutual fund investors and experts, the best fund can be identified only through comparing it’s qualities with similar type funds in the market. Generally, performance, fund manager efficiency, costs associated to the fund and market experience will come under scrutiny.
Insurance – Selection of a best insurance product can be done through comparing its features, facilities with similar products available in the market. Comparison plays major roles in the insurance space than any others. Whether it is a unit linked, health, general, child, auto or any other, a well study through comparing it to its peers help people to identify whether it is a right one for you or not..
Loans – Do you think any of us blindly apply for a loan, whatever kind it is, without learn about the interest rate and comparing it to the rates and features from other providers? Do you still require more explanation on the importance of comparison when dealing with loans?
Credit cards – Naturally a person required to compare the interest rates, charges, period, and any other features with all other cards available in the market. Comparing features and various rates considers as the best practice when dealing with credit cards.
There are many banking instruments, public and private instruments, whether it is for investors or for others, can identify its quality through comparative study only. This is informing us the role of ‘Comparison’ to take decisions and its unavoidable magic power.
Question: Could someone tell us a product or service that available to buy directly without a study or comparison? If you feel one is there with you, what made you to consider it doesn’t require any comparison?