Category Archives: Investing

Things Investors Should Hate 4/5: Observation

No human being can resist trying to draw general conclusions from personal observation.  It’s not purely a matter of wilful ignorance, but is an in-built evolutionary trait necessary for our ancestors’ survival. After all, on the primeval savannah if you … Read More

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Things Investors Should Hate 3/5: Innovation

I love innovation.  My entire career has been spent in technical innovation.  Even now I’m trying to replace the need for cash and credit cards by putting them on a cellphone.  But as an investor, innovation sucks. Unfortunately we’re attracted to … Read More

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Things investors should hate 2/5: Gurus

I”m not entirely sure what constitutes the entry qualification to be an investment guru. Intense self-belief and a complete lack of introspection, perhaps? The best analysts tend to be self-effacing, are often cautious in the face of uncertainty and usually … Read More

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Things investors should hate 1/5: Models

I don’t hate all models. I’m quite keen on the tall, leggy ones.  It’s the mathematical ones that come trailing clouds of false precision that are the subject of my ire.  Yet the world is a complicated place, too complex … Read More

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Investing in Europe

Andy Parsons highlights the potential benefit of investing in Europe. Investing in funds that are exposed to countries that form part of the European Union psychologically provides UK investors with a natural progression into overseas markets. This is partly due … Read More

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Mindless Money 5/5: Avoid Overspecification

The paradox of investing is that the best investors have a system, but that this system, mindlessly applied, exposes them to the very risks that they’re trying to avoid.  Markets go through phases, and systems and concepts developed during one … Read More

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Mindless Money 4/5: Stay Resilient, Be Prepared

Every so often in an investor’s lifetime the markets will throw us a completely unexpected curve ball.  Markets will fall off a cliff or soar off into the stratosphere. Whether we like it or not, if we invest in the … Read More

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Mindless Money 3/5: Hold the Big Picture

The key phrase here is situational awareness.  It’s about having the big picture as well as the focused analysis.  The world, even that part of it tracked by stockmarkets, is a complex adaptive system made up of many working parts.  … Read More

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Mindless Money 2/5: Don’t Oversimplify

Simplifying things is what we do, habitually.  The world is too complex, too multi-faceted for us to do anything else.  We develop a specific, individual mindset which we use to frame the world we operate in.  Sometimes this is a … Read More

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Mindless Money 1/5: Focus on Failure

Tim Richards is away, analysing the Eurozone crisis from the lofty vantage point of a Alpine bar. In the meantime this is a series of mini-posts on how to avoid the worst faults of the behaviorally compromised investor based around the … Read More

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