Maven: The Source Is the MicroHoo Issue

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And then there was light. Or, at least, the lightheadedness The Business Press Maven felt when he learned this week that Microsoft(MSFT Quote) is either buying Yahoo!(YHOO Quote) ... or playing a part in the mother of all unfounded rumors.

These days, when Dow(n) Jones(DJ Quote) can garner such an astounding bid, anything can happen. In a Columnist Conversation post on RealMoney, Adam Oliensis made the point with as good a figurative elbow to the ribs as I've heard in a while. "I have it from an utterly unreliable source," wrote Oliensis, "that pending Microsoft's acquisition of Yahoo! that the Lord will subsequently acquire Microsoft at 36% premium to its Judgment Day value."

So things seem to be going on Wall Street -- and in the business media.

But under normal circumstances, when faced with a true takeover or rumor dilemma, an investor should be careful. Slow down, take a breath and count and identify sources. Heck, even throw caution to its rightful place -- your portfolio -- and give it a try in these circumstances.

Sources are easy to count, and while it is surprising how few there sometimes seem to be, that's not always an automatic disqualifier. The Business Press Maven understands, in special situations, the need for unnamed sources.

But the key for a smart investor who doesn't want to be duped by some rumor-chasing wretch of the business media, eager to trade a big headline for losses someone else is going to incur, is to ask, does the article give us any sense of who these sources are and how they are connected (or not) to the purported deal?