On the double – Though easier said than done, ‘doubling down’ is a valuable tool for investors

By Andrew Lyddon The practice of ‘doubling down’ comes into play when, for whatever reason, the share price of an investment you believe in underperforms. If your original views on the stock still hold true, you are now looking at … Read More

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Catch our drift – Why the simplicity of the value process should be good news for investors

By Kevin Murphy The scientific calculations involved in, say, delivering an accurate free kick in football or taking a catch in cricket are extraordinarily complex so how come sportsmen manage to pull off such feats all the time? And even … Read More

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Fear factor – Why might value investors be less scared of certain stocks than the wider market?

By Andrew Lyddon Here on The Value Perspective, we would never claim to be fearless – spiders, say, or the musical stylings of Michael Bublé can make us as uneasy as the next person. So why is it then that … Read More

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Off-target – Human beings often focus on the wrong information and investors are no exception

by Nick Kirrage We have talked before about how people often end up focusing on the wrong information but, this time, let’s try and illustrate the point with a brainteaser. Imagine Jack is looking at Anne but Anne is looking … Read More

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The Jellybean Trilogy (Part III) – Why most back-tested data is less helpful than it could be

By Ian Kelly In Part I of The Jellybean Trilogy, we looked at the statistical science behind why most new medical research could well mean nothing before, in Part II, extending that line of thinking to the realm of financial … Read More

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The Jellybean Trilogy (Part II) – Why you should show causation before you seek correlation

In The Jellybean Trilogy (Part I), we highlighted a number of reasons – particularly the increased chance of finding so-called ‘false positives’ – why a leading US professor of health research had concluded most new medical research does not hold … Read More

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The Jellybean Trilogy (Part I) – Why you may not know what you think you know

By Ian Kelly In the first of a new trilogy we look at the statistical science behind why most new medical research could well mean nothing. Clearly when L P Hartley wrote his memorable opening line to The Go-Between – … Read More

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Metric conversion – What would it actually take for UK house prices to rise further?

By Ian Kelly We recently highlighted the unfortunate knack some investors have of misjudging when they move into illiquid assets. That article, Best laid plans, had been published on The Value Perspective for all of five minutes when, leafing through … Read More

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Hot and bothered – Looking too often at portfolio performance can be counterproductive

By Ian Kelly It was only a matter of time before somebody made the connection between the marshmallow test and retirement planning. After all, when you think about it, the test is all about delaying instant gratification in the pursuit … Read More

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Something or nothing – The human dislike of simply doing nothing can work against investors

By Kevin Murphy “All man’s miseries derive from being unable to sit quietly in a room alone.” So observed the 17th Century philosopher and mathematician Blaise Pascal but even he might have been surprised by the results of an experiment … Read More

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