In Search of Temperament
If you ask some of the most well-regarded investors what it takes to become a good investor, then they often tell you it is more about temperament than any technical proficiency. In this new series, MarketFox columnist Daniel Grioli tries to demystify this illusive concept and narrow it down to a few quantifiable attributes.
What Trait Psychology Tells Us about Factor Investing – Part II
Do factors have explanatory power in investment returns or are they merely descriptive? This is an important difference because the first characteristic would give them predictive powers, while the second would merely reflect past performance. In this second part on trait psychology, MarketFox columnist Daniel Grioli looks for clues in criticism of this branch of psychology.
Is Simple Always Better Than Complex?
In this last instalment, of the four part series on the criticisms of behavioural finance, MarketFox columnist Daniel Grioli brings it all together and makes the case for a framework that helps us decide how to choose between using heuristics and more complicated methods.
The Biggest Risk in Investing is Trying to Avoid It: Grantham
Asset managers don’t take enough risk when implementing their best ideas, according to veteran investor and GMO co-founder Jeremy Grantham. “By far the biggest risk in the long run is to try and avoid risk, to try and hedge everything out,” Grantham says. “Forget it. You’ve got to learn to take some risk and hit […]