Despite the abundance of research on stock prices and investor behavior, surprisingly little is known about how individual investors gather information before making trades. A new study by the National Bureau of Economic Research fills this gap using a rare and detailed dataset: browser history from U.S. households that actively traded stocks online.
Most Investors Spend Very Little Time Researching
The median investor spends just 6 minutes researching a stock before trading it. The average is 29 minutes, suggesting that while a few investors are more thorough, many do very little research. Nearly all this activity happens in the 24 hours before the trade, often in a brief burst just before execution.
Price Charts and Snapshots Dominate
93% of investors rely on snapshot pages and price charts—quick-glance views that show basic data like current price, volume, and recent returns. Price charts were the most viewed content, averaging over 39 minutes per trade. Earnings data was reviewed by about 40% of investors, typically for less than two minutes per trade. Risk statistics, such as beta or volatility, were rarely accessed, and detailed fundamental data (like earnings or dividends) received relatively little attention.
Yahoo Finance Is the Most Used Source
Among all domains, Yahoo! Finance was the most frequently used research site, used by over half of all investors. Investors spent far more time here than on their own brokerage platforms, which were often only briefly visited before placing a trade. Only about 7% of investors visited the SEC website, and fewer still used it in conjunction with a stock they traded.
Most Attention Goes to Big or Newsworthy Stocks
Large-cap stocks attracted the most attention. Stocks in the news—especially with earnings announcements or high-profile events—also generated more interest. For example, Apple was the most researched stock in the sample period, even though it wasn’t yet among the top 20 in market capitalization.
Two Distinct Research Styles Emerge
There was wide variation in research behavior, with some investors doing virtually no research at all and others spending hours—though often on similar types of superficial content. The study identifies two primary investor types:
- Short-term oriented investors: Focused on price charts, headlines, and technical signals, often when trading speculative stocks.
- Fundamentals-oriented investors: More likely to examine earnings, dividends, and valuation metrics, though this group was a minority.
The paper makes a strong case for rethinking how individual investor beliefs are modeled. The typical investor does minimal research, mostly immediately before trading, and rarely seeks out deep analytical data. The findings also open avenues for further research, particularly into whether different research behaviors lead to better portfolio performance or whether they are merely rituals of limited practical effect.
Interesting, What Should I Do?
Hire an expert (like us). Competent appraisal requires in-depth analysis of the subject company, guideline companies, their industry and the market overall. Businesses are sold based on sound economics. You will never see a competent professional appraiser do their work based on the kind of snap judgements described in this article. The professional standards that govern professional appraisal practice, which all professional appraisers should follow, require careful and thorough analysis.