BEHAVIOUR – First Principles 9
Long-time listeners know that for some time I have been fascinated by the study of behavioural finance, that is, the reason we make the decisions we do around money, and the implications of those decisions. There is no question that our responses to external events as we build wealth over time, has a massive effect on the eventual outcome. Today I want to try and cover this massive subject in précis form – let’s see how we get on!
This podcast is brought to you with the help of Seven Investment Management, who specialise in multi-asset investing, something I talk about a lot, and which I think should form the core of most people’s investments. 7IM have been helping me out here on MeaningfulMoney for ages, and I'm very grateful.
You can see what they’re up to at 7im.co.uk
You’re a human. I’m a human. This will not, I hope, come as a surprise to you. But our very humanity is at some deep level incompatible with the cold reason which is an essential component of building wealth. We know what we should do, but our dratted emotions so often get the better of us. I want to look at some of the key biases and emotional responses we bring to the table and then offer some suggestions as to how to minimise these.
Resources mentioned in this episode
Podcast: How to choose a multi-asset fund
Podcast: The Financial Wellbeing Podcast
Podcast: Maven Money
Course: Learn How To Invest
And, here's a transcript of today's episode:
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