Profiting and protecting from investor psychology

Livewire Exclusive

Livewire Markets

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 take advantage of other investors’ irrational behaviour. Terms like narrative bias, anchoring, and confirmation bias have become part of investor vocabularies in the past 10 years, but how can these ideas help investors make better decisions?

“Why do you look at stocks that are down 80% over the past 12 months? You might as well look at stocks that have doubled. Well, people hate losing money. So, when their stock is down 80%, they will sometimes do things that are irrational.”

In this enlightening presentation, Johnson shares some examples of times he’s fallen victim to these biases, and times when he’s managed to overcome.

Further insights

If you are interested in receiving the register here.

3 stocks mentioned

1 contributor mentioned

Livewire Exclusive
Livewire Markets

Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment