What do people mean when they say 'do your own due diligence'? - Seedly
Seedly logo
Seedly logo
 

Insurance

Investments

General

Anonymous

Asked on 09 Oct 2018

What do people mean when they say 'do your own due diligence'?

Noob question. Just curious. People keep talking about it. How exactly do we do it?

0 comments

9 answers

Answer Now

Answers (9)

Sort By

As Df

As Df

Level 4. Prodigy

Updated on 07 Jun 2019

Consider the source of the advice - will whoever is recommending the action benefit from it? What exactly are the benefits and USP it has? (And no, "my cousin's sister in law's lawyer friends' secondary school class mate said so and he works for Warren Buffet so bao jiak" or " trust me I'm a (self proclaimed) guru and I won't con my friends/relatives/colleagues etc " doesn't cut it)

Look for counter opinions - If it's such a wonder product, why isn't everyone rushing to get it? What are the reasons of the naysayers?

Engage common sense - which side sounds more rational to you? Double check whatever numbers they spouted with a independent source (e.g. If they say property prices has doubled every 10 years Google for statistics to see if it has done so) and then think if it's even relevant to the point they are making.

Decide on your own.​​​

1
👍
1
Loh Tat Tian
Loh Tat Tian

10 Oct 2018

Wise words on being your own critic and critical of advise.
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Boonhow Eng

Boonhow Eng

Level 4. Prodigy

Answered on 09 Oct 2018

  1. research 2. study 3. understand 4. think

if dont know whats going on, skip it, avoid it. dont listen to friend say, family say, relative say, colleague say.

0
👍
1
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

It means do your own homework and assess if that is suitable for you. Usually is to put as a disclaimer on any financial advice you see anywhere. When make money, all happy but when lose money will blame others.

0
👍
1
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Gabriel

Gabriel

Level 8. Wizard

Updated on 09 Oct 2018

Read up more and know what it is all about before venturing into something. E.g. Before buying a particular stock, download and analyse their annual financial statement to see how the business performed for the past years . If trying out a new investment like P2P, know about the risks involved and if you're willing to take that risk for the higher returns

0
👍
0
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Yong Kah Hwee

Yong Kah Hwee

Level 8. Wizard

Answered on 09 Oct 2018

do your own research and don't rely on just what other people tell you to buy

0
👍
0
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

Google will be your best friend on doing due diligence. Other than that, ask others like those in the community here as well as friends and family. Find out what they say. Then use all this to make a judgement call on whether to go ahead or not. Hope this helps

0
👍
0
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Rave Ong Ci De

Rave Ong Ci De

Level 6. Master

Answered on 09 Oct 2018

It means do your own research and not take other people words without thinking. Take things analysed with a pinch of salt.

0
👍
0
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Casey Choo

Casey Choo

Level 4. Prodigy

Answered on 09 Oct 2018

Research. Research. Research.

Always question the validity of advice/information from people & then make your own judgement on it!

Especially with financials - if you don't know, ask. If you've asked, take the answers with a pinch of salt and do your own research thereafter!

0
👍
0
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post