Curious Investor Behaviour - Number 10 Loss Aversion According to empirical evidence, the pain of losing $100 is felt more than twice as much as the pleasure of gaining the same amount (Kahneman and Tversky, 1992). Sadly, this irrational approach is evident in the stockmarket. Many investors keep...
The main reason people go into business for themselves is quite simple – to have more control. For others, wealth creation is the main focus, although small business also brings with it the higher chance of failure and loss. Is the hard work and extra...
Reflections on Investment - Number 8 Get Rich Slowly It makes a great deal of sense to compound wealth steadily rather than going for bust. Wouldn't you rather be sure of a good result than hopeful of a great one? Disclaimer: Platinum Asset Management Limited ABN 25 063 565 006 AFSL 221935...
Curious Investor Behaviour - Number 11 Representativeness Many of us react to the daily avalanche of data by adopting shortcuts - we tend to generalise from a small sample, creating stereotypes and false patterns. An example of this may be the assumption that Chinese shares have participated in...
We are pleased to advise that First Class Magazine has recently published an article written by Reuben Zelwer in its Winter edition. A copy of the article can be found by clicking the button below: Click here to read the article ...
We often speak of the impact of prices on future returns, and specifically that higher prices lead to lower future returns. In our approach to forecasting this is reflected in two elements, a higher price means a lower rate of income and also a reduced...