Facebook and yes; looks matter more than reputation

Our love of good stories often biases our decisions, which is evidenced by the scrambling to buy the Facebook IPO despite the fact that there’s virtually no concrete financial data to justify the price of the business (if it is even a ‘business‘).

We all know it’s true but this study confirms it yet again.  Our penchant for a pretty face can also falsely cause us to have an unreasonable level of confidence in someone’s abilities or trustworthiness.  Of these two faces pictured to the right, a substantial majority considered the face on the far right more trustworthy even though it is clearly the same person.

Begs the question for salespeople, advisors and investment professionals:  What does your Facebook profile photo say to people?

Of course, first impressions are often the only tool at our disposal and it is not surprising then that we run the risk of relying our instincts far too much.  Our brains are notoriously lazy, and so we are apt to come to snap decisions based on our feelings instead of engage in tedious research or analysis.

How many people do you suppose put orders in for the Facebook IPO believing they fully understand the business side of it…..simply because they managed to create a profile and connect with some family and friends?  It felt good using Facebook, and so it must be a good investment.  This makes no logical sense, but then we are not a logical species.

On the flipside, judgements based purely on appearance can prove to be very accurate, if only on very rare occasions.  By modifying the study, I was shocked to find that sometimes looks can be a reliable indicator indeed! 

If (once you stop laughing) you’d care to read the original article use this link:  Link to article: Looks Matter More Than Reputation.


About Mal Spooner

Malvin Spooner is a veteran money manager, former CEO of award-winning investment fund management boutique he founded. He authored A Maverick Investor's Guidebook which blends his experience touring across the heartland in the United States with valuable investing tips and stories. He has been quoted and published for many years in business journals, newspapers and has been featured on many television programs over his career. An avid motorcycle enthusiast, and known across Canada as a part-time musician performing rock ‘n’ roll for charity, Mal is known for his candour and non-traditional (‘maverick’) thinking when discussing financial markets. His previous book published by Insomniac Press — Resources Rock: How to Invest in the Next Global Boom in Natural Resources which he authored with Pamela Clark — predicted the resources boom back in early 2004.
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2 Responses to Facebook and yes; looks matter more than reputation

  1. Pingback: Facebook looks matter more than reputation | www.traderstouch.com

  2. Skai says:

    Hahahah Amazing!

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