The Evidence-Based Investor

Evidence-Based Investing Insights – Video 4/4

Posted by Robin Powell on March 24, 2016

Now for the fourth and final part in the video series we’ve been featuring over the past few days, Evidence-Based Investing Insights.

Last time we looked at the different factors that drive investment returns. But perhaps the most important of all is the human factor.

Even if you fully understand and accept that markets are efficient and that it’s almost impossible to outguess them, you’re only human. You’re prone to make behavioural mistakes which could have a seriously detrimental impact on your long-term investment returns.

Experts in behavioural finance have identified scores of different biases that investors have. In this video we briefly explore six of the most common ones. The important thing is not just to be aware of these biases but also to acknowledge that you yourself are prone to them.

Having an adviser who understands behavioural finance, who is aware of your particular biases and who can help you to keep them in check, will also give you a big advantage.

 

This series was commissioned by, and produced for, Independence Advisors in Pennsylvania. If you’ve found these videos helpful please do share them.

 

If you’re an adviser who shares the evidence-based investing approach, and you would be interested in a separate version of this series carrying your own company’s branding and contact details, please get in touch with Sam Willet at Regis Media. Sam can be contacted on +44 (0)121 285 2585, or at s.willet@regismedia.com.

There is also a German version of this series, Anlegen mit Durchblick. Any advisers interested in a branded version of that, or our other popular series, Sechs Schritte zum erfolgreichen Anlegen, should contact Christina Waider, also on +44 (0)121 285 2585, christina@regismedia.com.

 

Also in this series:

Evidence-Based Investing Insights – Video 1/4: Market Pricing

Evidence-Based Investing Insights – Video 2/4: Diversity

Evidence-Based Investing Insights – Video 3/4: Return Factors

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Robin Powell

A journalist and broadcaster, Robin Powell is a campaigner for positive change in the investing industry. He runs a communications company for the evidence-based investing sector called Regis Media.

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