I spend a lot of time in “How Not to Invest” discussing how our own biases often work against us. This is especially true when it comes to the information we consume relative to our investments and portfolio.
While we tend to focus on the biases in various media outlets or cable channels, we may not stop to consider how the algorithms that drive the social media platforms we consume are affecting our perception of current news events (See chart above).
The Argument takes this to the next level by using survey data on where people get much (most?) of their news and how this affects their perception of specific events. They don’t evaluate platforms by their bullish or bearish stance, but rather how major news stories show up in people’s partisan preferences by platform:
“Whether you’re getting your information from TikTok, Instagram, Reddit, Twitter, cable news, or elsewhere, platforms are shaping your information diet in ways you may not even notice. Content is inseparable from the vehicle within which it arrives.”
There is some risk that people gravitate to the platform that reflects their views; that certainly is likely ever since Twitter was purchased. Regardless of that selection issue, the results were quite surprising.
Consider the political leanings associated with each platform in the chart:
There is definitely an “algorithmic bias” built into all of these platforms.
I cannot say that I was surprised at Reddit, which tends to be more like the old internet — where college-educated, youth, and higher income skew to the left. I am a little surprised at TikTok, but I to assume it’s mostly a younger age demographic that drives all of that. I am completely unsurprised at Twitter…
If this sort of thing interests you, check out the complete piece, with lots more data and charts, at The Argument.
Previously:
TikTokInvestors (May 9, 2024)
The Price of Paying Attention (November 2012)
Source:
Twitter is not real life
by Lakshya Jain
The Argument, Feb 05, 2026.
I extensively detail why Social Media is the worst place to get your investing news from in How Not to Invest: The ideas, numbers, and behaviors that destroy wealth―and how to avoid them.”
It’s on sale at Amazon for $20.54!
