Podcast Summary: Business School with Sharran Srivatsaa

Episode: The Algorithm Is Lying To You
Date: December 16, 2025
Host: Sharran Srivatsaa

Overview

In this episode, Sharran Srivatsaa tackles the dangers of trusting financial advice that goes viral on social media. He unpacks how social media algorithms favor flashy, oversimplified, or outright misleading advice—usually to the detriment of viewers seeking honest information. Sharran draws from his experience as an investor, operator, and Wall Street veteran to warn listeners about the “algorithm economics problem” and offers actionable strategies to evaluate the financial guidance they encounter online.

Key Discussion Points & Insights

The Core Problem: Algorithms Value Engagement, Not Accuracy

• Algorithms are not designed to verify the accuracy or validity of content.
  • “The main purpose of these social media algorithms is to push content out to you... They never check, fact check the validity or the source or the accurateness of this content.” (01:02)
• Financial advice often goes viral when it's wrong.
  • Correct advice is seen as boring and is often ignored.
• Disturbing stats from FINRA's 2024 review of social media finance posts: (02:35)
  • 70% failed basic compliance standards
  • 55% didn’t disclose paid advertisements
  • 38% didn’t mention any risks
• Over half of Gen Z primarily learns about money from TikTok.

Incentives and Economics of Viral Finance Content

• Incentive mismatch: Creators are incentivized by eyeballs and commissions, not by accuracy or viewers’ financial well-being.
• Paid partnerships drive influencers to push products or accounts, regardless of their merit.
  • “Finance influencers do not make money from investing. Most finance influencers know nothing about money.” (07:01)
• Algorithms reward bold, sensational claims:
  • “A 30 second clip promising, like, hey, here are the three stocks that will explode this month… is always going to beat a seven-minute explanation of diversification.” (05:00)
• Hidden business model: Influencers are “mirrors,” reflecting what gets the most engagement and revenue, which perpetuates the problem.

What Does Good Finance Content Look Like? (09:06)

• Should focus on sound principles, not get-rich-quick “hacks”:
  • Explains compounding and time horizons (“Not sexy stuff. Not get rich quick themes.”)
  • Clearly discloses risks
  • Teaches key principles rather than making specific, blanket recommendations

Three Rules for Consuming Finance Content

1. If it sounds guaranteed, it’s probably not true. (11:53)

• “If somebody says something like, okay, this stock will double, or this... is free money... that is a fake guru. But gurus are really good because they sound insanely convincing.”

2. Ask: Who benefits from this advice?

• Determine whether the influencer profits from your actions (signups, clicks, buys), not from your results.

3. Always verify with ‘boring sources’.

• Send tips to a trusted expert: “If I get a piece of investment advice, I’ll send it to my financial advisor. ...If I get a piece of tax advice, I’ll send it to my CPA and be like, hey, is this actually true?” (13:01)

• Sharran gives a concrete example: He saw a viral mortgage strategy, sent it to three top professionals, and received three different opinions—including “this person's totally cuckoo.” (13:32)

Key Takeaways

• Social media is effective for discovering new ideas, but you should not make financial decisions based on what you see online without independent validation.
  • "I'm just going to suggest it’s bad for making decisions. So don’t make any decisions with discovering these ideas." (14:04)
• Always use “boring” verification methods—financial advisors, CPAs, professionals—to confirm any advice before acting.
• Most finance influencers optimize their advice for clicks, not outcomes.

Notable Quotes and Memorable Moments

• “The data actually tells us that whoever is shouting loudest, the biggest, loudest advice about money is actually the worst advice about money.” (02:45)
• “Finance influencers do not optimize, do not care about your wealth. They care about views. And the algorithm pays them to do it.” (06:40)
• “This is not a content problem. This is actually an incentive problem.” (07:27)
• “The boring parts are what actually keep the money in your pocket.” (08:32)
• “If it sounds guaranteed, it’s probably not true.” (11:53)
• “Ask: Who benefits from this advice? ...Does this person make money if I do what they say?” (12:35)
• “I just want to tell you that finance influencers are not the problem. They are literally like a mirror mirror on the wall that shows you what you want to hear.” (13:58)

Timestamps for Important Segments

| Timestamp | Segment | |-------------|-------------------------------------------| | 01:02 | Why social media algorithms push bad advice| | 02:35 | FINRA stats on viral finance content | | 05:00 | The "algorithm economics problem" | | 07:01 | How finance influencers make money | | 09:06 | What good finance content looks like | | 11:53 | The three rules for consuming finance content| | 13:01 | Real-world example of verifying advice | | 14:04 | Key takeaway: verify with "boring sources"|

Actionable Lessons

• Don’t trust content because it’s popular or delivered by someone who “looks the part.”
• Always investigate the incentives behind each post or influencer.
• Use social media for discovery only—never as a sole source for making financial decisions.
• Make it a habit to verify financial advice with established professionals or “boring sources.”

Conclusion

Sharran’s episode warns listeners not to fall for viral financial advice that’s algorithmically promoted for engagement, not accuracy. His bottom line: respect the role of expertise, understand the business model behind what you see online, and always verify claims with trusted professionals.

“Finance influencers are not the problem. ...They are literally like a mirror mirror on the wall that shows you what you want to hear. ...Please, please, please verify with the boring sources because that will give you the best results overall.” (13:58)

For more playbooks and actionable resources, check out sharran.com