Making sensible investment decisions is difficult. We are subject to a range of behavioural biases. We have to cope with incessant noise around financial markets. We behave in ways that are inconsistent with our long-term investment objectives. So what can we do about it? Show More
Behavioural economics moved into the mainstream when psychologist Daniel Kahneman was awarded the Nobel Prize for economics. Ironically, his work was critical of classical economics. He focused on how human behaviour differs from what economists would expect, from their theoretical viewpoint. (vii) Show More
We asked Nikki Thomas from Alphinity to share one of the useful investing lessons that she has picked during her career. Rather than pointing to a specific rule she says the most useful tip she can give is to make sure you are aware of your own tendencies and biases. “I’m... Show More
Seth Klarman, CEO and Portfolio Manager of the US-based hedge fund, Baupost Group, has been touted widely as “the next Warren Buffett”. The nickname The Oracle of Boston (a reference to Buffett’s “Oracle of Omaha” nickname) has even been used to reference him. However, unlike Berkshire Hathaway, which is a... Show More
When it comes to investing, Australians forego their ‘globetrotter’ reputation and rarely look past local companies. In consumption, however, we are far worldlier and have embraced international brands such as Apple, Samsung, Google, BP and Toyota. Show More
Investor psychology is arguably the biggest determinant of long term investment success, and has a greater impact upon long term investment performance than even asset allocation or stock selection. In this article we look at 6 money making secrets based upon the powerful world of behavioral finance. Show More
A lot has been written about investors’ behavioural biases. But are the types of experienced investors who visit Livewire really biased? If so, what specific investment decisions are impacted? And by how much? And, given that we’re all human, are Livewire subscribers convinced that asset managers can overcome their own... Show More
People often ask Steve Johnson, ‘what’s your edge? What do you do differently that allows you to outperform?’ His answer is straightforward: “we don’t have a big team, we don’t have an informational edge, we are not smarter than the people we compete against.” What they can do though, is... Show More
My advice has been consistent over the years: get your portfolio allocation right and let us worry about the timing. It’s fair to say it’s a piece of advice widely ignored. Show More
The term "volatility” has become a euphemism. What people mean when they say, “markets have experienced some volatility” is that markets have gone down. You never hear a financial commentator bang on about those pesky volatile stocks that are up every single day and breaking new highs. Show More