Chats at social gatherings can be interesting and often a great source of misinformation....

Last month I had a fun and interesting day.

It was a day where my extended family and some friends gathered for an outdoor lunch. We do this a couple of times a year, and each of us takes turns hosting the event. It's always a case of too much food, too much to drink and too many laughs!

Usually, the host will also invite some friends along too. Generally, we have about 20-30+ people at these events - so you can imagine the noise. If you've ever watched the movie My Big Fat Greek Wedding, then you'll have an idea of what I am talking about!

Today I met some people for the first time, and chatted with them on several topics.

As usual, we covered the "normal" topics of the day, issues with the world, current events, etc. As the day progressed, I was "enlightened" by some of the guests on various topics such as:

• Gender identity issues, and how some student at a school identifies as a cat, and the school had to supply kitty litter boxes for the student to use. - Interestingly, several people were adamant that this was the case. However, nobody actually checked the facts, they just repeated what they had heard elsewhere. Truth is, litter boxes were not supplied by the school and the student was dressed as a "furry" (in costume) and identified as a cat. However, the story got blown out of proportion - as usual.

• The market rental of commercial realestate in the Sydney area, and what they believed to be a bargain rental obtained by a relative. - Again, interstingly, they had no idea what the actual market rental of property was, they just looked at the price while completely ignoring the fact that the space was just 12 sq metres. Yep, thats it, just 12 square metres. The bargain rent turned out to be $2000 per square metre per year - not a bargain.

• How to value a business. I was told, by one of the lunch guests, that a particular business they know of was valued at $500,000 by an "independent" party back in 2018. So they expect that the business is worth that now. Turns out, it isn't. - Not surprisingly, they had no idea how to value a business. They failed to take into account that COVID has changed the game for coffee shops and the like in places like the CBD. I told them that any buyer would be looking at the last 2-3 years "takings" and basing a current valuation on those numbers, NOT historical five year old data that has since dropped hugely.

• The Sydney CBD will become busy again, just like it was before COVID. - Then I asked the question "why?". Nobody could really say. They just assumed. Whether it will or not, and to what degree, nobody really knows - including myself.

• Contesting of Wills. Everybody will have a story of how somebody had a Will that was contested when they passed away, and the only winners were the solicitors. - I suggested that there is no surprise there, solicitors write the wills and the laws allow it to be contested, hence this is just part of the game. Of course, if one is serious about protecting one's assets and having one's wishes dealt with properly, then one should seek advice from an Estate Planner (a solicitor that specialises in this sort of thing) and have a testamentary trust set up.

This day is not an unusual one. I have had thousands of conversations like this, with countless people who honestly believe that what they are saying is correct and factual - even though they have never actually fact checked their story. Even so-called "experts" often have no clue about certain points within their "expertise".

People love gossip, love to talk about themselves, love to talk about others, love drama, will talk about current events, will discuss trends etc. Few will discuss ideas and concepts. Most people will talk, and few will listen.

So, my point here? Well, there are several to be made:

1. If you're in a conversation and someone seems to have a convincing viewpoint, the simple questions of "why", "how", "where" and "when" often sorts out the people that have little clue what they are talking about.

2. If you have read the lessons on this website, you will already have developed a BS detector.

3. People most often repeat what they have heard from others, who, have repeated what they have heard from someone else, who, has repeated what they heard from another source. - Are you getting the message here?! Most of what you will hear is unreliable BS passed on from person to person. So, can whoever is telling you this, actually back it up with documented evidence or data? If not, you know why - because it is BS.

4. Not once did any of the people I spoke to ask me any questions to get a "feel" of who they were talking to. They were busy discussing topics with me, that I have been (in most cases) involved in for years. They were trying to "educate" me in areas that I had expertise in, and they knew nothing about. The Lesson to take away from this point is - KNOW WHO YOU'RE TALKING TO.

5. If you are like me, and understand that most people have little idea regarding investments, have little idea how the world actually works, that most people love mindless gossip, love talking about themselves, often talk about other people, current news items, that most people talk much more than they listen and don't ask enough questions (hence remain ignorant on most topics), then you MUST understand that only a small percentage of what one hears is of benefit, correct or worthwhile info.

6. Mindless conversation is OK, but that's all it is. Make sure it goes in one ear and out the other.

7. Few people discuss ideas and concepts. If you find someone that does, you may actually uncover something worthwhile. You may learn something new. You may open your mind other possibilities. Remember though, few people are of that calibre.

Always give yourself credit for being smarter than you think you are.

Always remember to question everything - never be afraid to ask "why"?