Douglas Isles, Investment Specialist, presented for the second consecutive year at the Portfolio Construction Forum’s Finology Summit in Sydney on 14 February 2018.
Behavioural impacts on investment decisions are well understood but human conditioning also impacts investment communication. Practitioners demand a trifecta from fund managers - performance, simplicity, connection - opening up risks. Performance chasing in fund selection leads to sub-optimal client outcomes, while assessing processes and outcomes is hard and has parallels with stock selection. Simplicity and connection expose recipients to powerful risks of influence; these “tools of selling” contradict “tools of investing”. Disagreement is a barrier to persuasion yet many great investments are contrarian and uncomfortable, while an investment process simple enough to codify will inevitably be replaced by a cheaper automated alternative.
Read Douglas' full speech here. View slides here.
DISCLAIMER: Issued by Platinum Investment Management Limited ABN 25 063 565 006 AFSL 221935, trading as Platinum Asset Management (‘Platinum’). The above information is commentary only (i.e. our general thoughts). It is not intended to be, nor should it be construed as, investment advice or any form of financial product advice. It has not been prepared taking into account any particular investor’s or class of investors’ investment objectives, financial situation or needs, and should not be used as the basis for making investment, financial or other decisions. Before making any investment decision you need to consider (with your professional advisers) your particular investment needs, objectives and financial circumstances. To the extent permitted by law, no liability is accepted by Platinum or any other company in the Platinum Group®, including any of their directors, officers or employees, for any loss or damage arising as a result of any reliance on this information.
'Buy Low Sell High' Sounds Simple, But Investors Need a Framework
Loss Aversion, 'FoMo', Anxiety and Mistiming
A Framework for Dealing with Change
What is on Our Clients’ Minds, and How We Play Tricks on Ourselves
www.platinumworldportfolios.ie, is operated by Platinum World Portfolios PLC, a variable capital investment company incorporated under the laws of Ireland under Registered Number 546481 ("the Company", “we” or “us”).
By proceeding to access, view or download information from this website, you acknowledge that you have read, and agree to be bound by, the following terms and conditions. If you do not agree to these terms and conditions, you must not use this website.