Smart People Trust Experts

Introduction

In the age of “DYOR” — Do Your Own Research — trusting experts has somehow become unfashionable. We’re told that independence means doing it all ourselves: from learning a new language to trading currencies. Yet when it comes to money — arguably the most complex system most of us will ever interact with — the “I’ll figure it out myself” mindset can quietly drain years of returns and peace of mind.

The irony?

Some of the  smartest people in the world all rely on experts.

CEOs hire CFOs. Footballers trust physiotherapists. Even surgeons don’t operate on themselves.

This article explores why trusting financial experts is a sign of intelligence, not dependence — and how disciplined, expert-led investing frees you from the illusion of control without sacrificing your autonomy.

1. The Cult of Self-Reliance

We live in a DIY world especially with the advent of AI and abundance of knowledge. Anything you can think of which requires skills can be acquired through self-taught. You can file your taxes, learn coding, or fix your sink with guidance from YouTube. That same empowerment has spilled into investing — especially among younger generations.

According to a 2023 RinggitPlus survey, 68% of Malaysians turn to social media for financial insights, making it the top source of information — even ahead of asking friends and family (60%) or traditional media like TV and newspapers (31%). What's more surprising? Social media wasn't just the most used source; it was also rated as the most trusted by respondents.

But here's the catch: only 22% of Malaysians have ever attended a personal finance or investment course. That means the vast majority are learning from unverified sources online, where anyone can claim to be a "financial guru" without credentials or accountability.

Unfortunately, that’s not empowerment. That’s misplaced confidence.

It’s what behavioural economists Daniel Kahneman and Amos Tversky called the “illusion of validity” — our tendency to overestimate our own understanding of complex systems simply because the information is easy to access. (Thinking, Fast and Slow, 2011)

2. When “DYOR” Becomes Dangerous

“Do Your Own Research” started as good advice. In fact most genuine investment forums would urge for you to verify information before you act.

But on social media, DYOR often becomes a disclaimer, not a discipline.

Influencers throw it in captions to avoid accountability, but the truth is that many considers their learnings from influencers as a form of research. They fall short of truly learning what is required to fully understand risks involved.

The result: a lot of people think they’re being careful when, in fact, they’re just confirming their biases.

Meanwhile, trust in social media for financial advice has been rising. The RinggitPlus survey showed the average trust score for social media grew from 3.7 to 4.0 out of 5 in just one year. Yet analysts warn of the risks when "unaccredited financial gurus" on TikTok or Instagram become the go-to advisors, especially with online scams becoming increasingly sophisticated in Malaysia.

That’s not research — that’s roulette.

3. Confidence ≠ Competence

The single greatest reason investors lose money isn’t market movement — it’s behaviour.

According to DALBAR’s 2024 Quantitative Analysis of Investor Behavior, the average stock investors returned 16.54%, while the S&P 500 returned 25.05% — a gap of 8.5 percentage points. The culprit: emotional, impulsive decision-making. (prnewswire.com)

When you “go it alone,” you’re not just battling markets — you’re battling your own psychology and exposing yourself to these biases and limitations :

• Recency bias: assuming what worked yesterday will work tomorrow.
• Confirmation bias: seeking information that agrees with you.
• Overconfidence: mistaking familiarity for mastery.
• Loss aversion: panic-selling to avoid short-term discomfort.

Professionals are trained to manage these biases. They work within a framework that discipline decisions — models, committees, audits.

Retail investors, on the other hand, often rely on gut feelings, news headlines and Reddit threads.

It’s like flying through turbulence: a passenger might panic, but the pilot trusts the instruments. Experts aren’t fearless — they’re trained to stay rational when others can’t.

4. Delegating Isn’t Weak — It’s Strategic

People often confuse delegation with dependence. But the smartest minds as in business, sport, medicine, or finance. Delegating is key to achieve better outcomes.

• Warren Buffett has professional analysts and portfolio managers feeding him data.
• Influencers rely on managers and team to execute.
• Airline pilots depends on automated systems and co-pilots, not because they’re lazy, but because redundancy reduces error.

In the same way, expert-led investing is about appointing someone to do the heavy lifting.

You set your goals, but experts design the roadmap, monitor risks, and course-correct when markets move.

A 2023 Vanguard study found that investors who worked with professional financial advisers saw an average 3% “adviser alpha” — meaning their returns were 3 percentage points higher annually, net of fees, than comparable DIY investors. (vanguard.com)

That’s not because advisers have magic stock picks — it’s because they systematise good behaviour.

5. The Freedom That Comes from Structure

Counter-intuitive truth: the more disciplined your investing structure, the freer you are.

When you automate contributions, follow risk bands, and outsource due diligence, you free your mind from the constant churn of “Am I doing it right?” and “What should I do next?”

A University of Chicago Booth Review (2024) noted that structured investing reduces stress and decision fatigue, improving financial well-being and long-term participation rates. (chicagobooth.edu)

Trusting experts doesn’t rob you of control — it removes unnecessary decisions.

It’s not passive; it’s productive focus.

6. Expertise + Integrity = Sustainable Confidence

Trusting experts blindly can be dangerous — but trusting verified experts is a smart move.

The key distinction is accountability.

In finance, that means clear governance, transparent methodology, and alignment with your values.

It’s the difference between someone telling you what to do and a system built to protect you.

For faith-driven investors, the oversight is even more vital.

A Shariah Board, for example, acts as both a moral compass and a technical auditor, ensuring investments are free from riba (interest), excessive speculation, or unethical industries.

That’s what Wahed is designed for:

• An independent Shariah supervisory board reviews every portfolio for compliance.
• Portfolios are diversified and rebalanced according to risk tolerance, not hype.
• Transparency is baked into every decision — from screening methodology to fee disclosure.
• Independent audits and regular updates with regulators reflects good governance.

Experts helps reduce costly mistakes;  integrity ensures  misalignment.

7. The Data Behind Expert Outperformance

Let’s look at what “trusting experts” actually does in numbers.

8. Values, Faith & Expertise: The Strongest Trio

For Muslim investors — and increasingly for ethically minded ones — trusting experts has another layer of meaning.

It’s about ensuring that how you grow your wealth is as important as how much you grow it.

The global Islamic finance industry now exceeds $4.5 trillion, growing at roughly 8–10 % annually, driven by younger investors who want faith-aligned returns without riba or speculation. (IFSB 2024)

This shift reflects a broader truth: expertise without ethics is incomplete, and ethics without expertise won’t scale.

The intelligent path is where the two converge.

9. What Smart Trust Looks Like (Checklist)

Ask these five questions before you “trust the experts”:

• [ ]  Who are the experts? Credentials, governance, and regulatory licence.
• [ ]  How transparent is the process? Clear methodology, published screening criteria.
• [ ]  What oversight exists? Independent audit or Shariah board?
• [ ]  How are conflicts managed? Fee structures and incentives disclosed?

If the answers are clear and documented, you’re practising informed trust — the hallmark of intelligent investing.

The Pay-Off: Emotional ROI

Beyond returns, trusting experts delivers something numbers can’t easily measure: peace of mind.

• Less screen-checking, more focus on life goals.
• Less resource spent on acquiring niche and technical skills, more to spend on what matters.
• Less FOMO, more faith in process.
• Less anxiety, more confidence that someone competent is watching over your portfolio.

Financial confidence is contagious: once you experience the relief of structure, you wonder why you ever tried to go it alone.

Conclusion

In today’s culture of endless information and performative self-reliance, it’s tempting to treat financial expertise as optional. But data — and common sense — say otherwise.

True intelligence isn’t about doing everything yourself; it’s about knowing when to trust those who do it better.

So the next time someone tells you to “DYOR,” remember:

Doing your own research doesn’t mean ignoring expertise — it means verifying the experts you’ll delegating for managing your wealth.

Because smart people don’t just trust experts blindly.

They trust experts intelligently.

Disclaimer: This article is for general information and educational purposes only and has not been reviewed by the Securities Commission Malaysia. The information does not constitute investment advice or an offer to buy or sell any capital market product. Always verify that your financial adviser or platform is licensed and regulated by the relevant authorities.

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