Drawdowns, inefficient markets and a portfolio managed by God
The concept of this research is to capture results associated with a long-term investor (we assume a 5-year holding period) that has incredible stock-picking skill
broad framing
Danny Kahneman type risk policies for investors
Investor psychology can cause a security to be priced just about anywhere in the short run, regardless of its fundamentals
A set of rules to develop a behavioral edge – Part 1
Today everyone is fretting about inflation and the potential for a recession. Trying to decide on the outlook for these macro-economic things can be a distraction.
Superior investment performance – what it takes – part 1
No doubt some qualities are ‘bred in the bone’. But, it also seems some children learn how to be more confident, to have higher executive control and to be more willing to trust experimenters who offer double treats.
The secret to keeping things in perspective
Shielding themselves from the pain of losses by Broad Framing
Investors can counter management short termism
63 per cent of respondents said the pressure to demonstrate short-term financial performance had increased over the last five years
Overcoming mistaken short term thinking with Kahneman style risk policies
Reduce or eliminate the pain of the occasional loss by the thought that the policy that left you exposed to it will almost certainly be financially advantageous over the long run
Investors defending against management spin and ourselves
If you don’t know what framing is, it’s a wonder you survived this long. We can defend against misframing when others use it against us. But, as important, we can learn to be alert to our own lack of perspective and reframe our own view of things to our advantage.
The special risks of investing a windfall gain
Investors always need to be alert for things that make us risk seeking. Risk seeking is bad. Risk seeking is being willing to take a risk even if the chances of success are poor. Risk seeking causes investors to lose money.
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