herding

Mike Taylor

One of the most important lessons from behavioural finance is that the market can stay irrational longer than you can stay solvent. Everyday investors can apply a basic test when they make an investment by asking themselves ‘does the price I’m paying for this asset seem reasonable?’ If you are... Show More

Nick Kirrage

The concept of ‘herding’ is a powerful lesson that investors should not ignore. Herding is the bias that can lead investors to follow the crowd, whether they genuinely agree with what they are doing, or are just scared of being left standing alone. Show More

Michael Haddad

Recently we’ve been researching Austrian firetruck manufacturer Rosenbauer International. If you study the associated changes in broker price targets, you’ll find a clear pattern of human psychology that you can exploit over and over again. Show More