Successful Investing is not just strategy…Winners think differently

Papers presented at the 18 November 2016 'Successful Investing is not just strategy…Winners think differently' , one-day seminar held at Sydney, are available as indicated by the links in the program below.

What separates great investors from the rest of us?  To a large extent, it is the ability to understand and manage behavioural biases – the irrational fear and greed that grips the market – and harness this knowledge to avoid common pitfalls and benefit from the mistakes of others.  Why do we chase returns, follow the herd, and panic sell at just the wrong time?  Why do we keep making the same mistakes?

The answer lies in the rich field of investor psychology, also known as behavioural finance, which has resulted in Nobel Prizes and thousands of academic articles.

This seminar brings together a range of experts to describe common pitfalls and how to overcome them.  Starting with a unique analysis of your personal risk tolerance profile (an on-line survey will be sent to you before the Seminar) you will gain insight into your financial attitudes, values, motivations, preferences and experiences and the level of financial risk with which you are most comfortable.

Learn how the professionals manage behavioural biases and risks.  Hear about the traits of successful investors and how to nurture these traits in yourself.  Learn how to improve your decision-making and overcome your natural emotions to become a better investor.

The workshop will provide investors with the tools to incorporate these strategies in their personal investment plans, tailored to their own circumstances and personalities.

 

 

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Understanding your Risk Tolerance Profile       

Nicki Potts (FinaMetrica)

The process of risk profiling is to find an optimal level of investment risk for you considering your risk required, risk capacity and risk tolerance.

You will have the opportunity to use FinaMetrica’s risk profiling tool a week or two before the Seminar to scientifically assess your financial risk tolerance. The results will give unique insight into:

- Your financial risk tolerance backed by over 1 million risk tolerance profiles,

- The suitable range of risky assets based on your risk tolerance, and

- Risk and return research across your risk spectrum.

Learn how to apply your risk tolerance results against your risk required and risk capacity.

  Presentation

Overcoming cognitive biases as a fund manager        

Romano Sala Tenna  (Katana Asset Manager)

In this talk a leading fund manager will discuss the impact of investor psychology and cognitive bias on equity investments. The session will include:

- What are the main ways that our thinking impacts our investment returns?  Includes discussion of recency bias, loss avoidance and confirmation bias.

- What hardwired human instincts naturally make all of us “Bad Investors”?

- How can we learn how to handle underperforming stocks in our portfolio?

- What other processes / plans can we put in place to safeguard our thinking as best as possible from biases.

 

 Presentation 

    Handout

Enhancing Investment Performance           

Wai-Yee Chen (Investment adviser and author)

Many investors and traders are frustrated by their decision processes, and it is often a lack of skill that delivers less than optimal results. Understanding one’s own and more so, other investor’s behaviours are paramount to investing and trading successfully. Many decisions are reactions swayed by the unconscious and conditioning deeply wired within the brain. What role does the brain play in the dynamic, risky and uncertain world of finance? What if we have insights to stimulus of behaviours and emotions? What if they can be turned from distractions to constructive trading strategies? Is it possible to rewire our brain for better performance? These will be uncovered to help investors achieve higher performance and greater satisfaction.  In this session you will learn how to:

 - Profit from understanding who you are

 - Leverage off how your brain is wired

 - Put a stop loss to mental and emotional traps

Presentation

Practical tools to overcome psychological bias         

Steve Johnson (Forager Funds Management)

Even though an investor may have a deep understanding of psychological biases, it doesn't prevent falling prey to them. Using Forager’s experience as a fund manager, Steve Johnson will explain some key tools and rules to help manage investment risk and maximise returns.

Presentation

What we know that ain’t so               

Colin Nicholson (Investor and Educator)

In this session Colin will lead you through an exercise in self-discovery through an entertaining quiz. Out of this he will draw lessons firmly based in the discoveries by behavioural scientists, who have discovered ways in which we all make sub-optimal solutions, which seem very natural, but are in fact systematic deviations from rational judgement.

Presentation

Your investment plan and beyond        

Colin Nicholson (Investor and Educator)

In this session Colin will bring together much of what you have learned through the day. He will explain what should be in an investment plan and why. However, formulating an investment plan is only a first step. The more powerful aspect is the way in which we implement it: choosing investments and managing them through the vicissitudes of the market. Colin will here be sharing with you lessons he has learned in 51 years of investing.

Presentation