Discussion on:

?Snap? decisions may be just as effective as well-informed decisions (2)

A snap decision shouldn't be confused with an informed decision, nor a guess.

In the case of the MIT students above. The students didn't know which information was important, because they probably had no experience picking stocks. Looking at fundamental business performance can certainly help improve performance.

It is a judgment call to decide when you have enough information, and which information.

Some examples, "sales per square foot" for retail. "Sales per employee" in software. I have built a few business plans over the years, and in working with potential investors, each of them usually focused on just a few numbers that mattered to them. Unfortunately, the numbers any particular investor wanted to see were usually different from one to the next.

That said, it is worth noting that less than 20% of the mutual fund manager out perform the S&P 500.

I find it amusing that this wholes study is an over analysis of gut reactions.