The perils of falling in love (with an investment)

Wise men say... It's easy to fall in love with one of your investments, especially if it has performed well for you to date. Yet this may also be a trap. After all, if you bought an asset or security because it appeared to offer good value at the time… full article

Do what you do best; outsource the rest

At your own risk An entrepreneur is a decision-maker comfortable with taking risks, and prepared to invest in & embrace activities without sure outcomes. Most people don't think this way. It's often a challenging concept for academic high achievers, for example, to assume the risks & rewards of projects that… full article

Beginning with the end in mind

Direction, reaction...creation Without getting started little can be achieved. The great educator Stephen Covey further submitted that a habit of highly successful people is to begin with the end in mind. Taking action is great; but you need a strategy. And the actions you take need to be in the… full article

The importance of getting started (& 4 ways to actually begin)

'I've started so I'll finish' Do you ever browse through those 'day in the life' profiles where successful people forever seem to start their day at obscenely early hours? Although the repetition can be grating, it's not entirely coincidental. After all, you can't achieve much in a day if it… full article

‘Don’t just do something; stand there!’

Doing nothing is hard to do 'Don't just do something; stand there!'. This delightful piece of wordplay has been around since at least the end of WWII, and has variously been attributed to Clint Eastwood, Dwight Eisenhower, and even Lewis Carroll's White Rabbit. In terms of how this counter-intuitive phrase… full article

Remaining solvent (cashflow is critical)

Too big to fail? Another week, another high-profile corporate collapse reported, this time in the UK construction sector, with the group in question having reported very strong growth in its 2016 revenues to well over £5 billion, growth in its underlying profit before tax, and an increased dividend. How so?… full article

Negativity bias & how to beat it

Faint praise 18 months or so ago I went to a party in Sydney where I met one of the country's best-known economic journalists, and happened to ask him whether he felt news articles with a negative slant or angle were better received overall than those adopting a positive stance.… full article

5 steps to tackling loss aversion

Thrown for a loss Countless casino and coin-tossing studies have concluded that, due to the way we have evolved as a species, we feel the pain of loss far more acutely than we enjoy the sensation of making a gain. Indeed, casino operators know this only too well, which is… full article

Information failure (& 5 ways to tackle it)

Information asymmetry Typically in a transaction one party has access to more information than the other, and this asymmetry can be higher in more complex markets. To alleviate fears of insider trading in the stock market, investors are often compelled to 'follow the smart money' - fund manager Peter Lynch… full article

5 ways to prepare for a complex & uncertain future

Dark side of the moon This week I skimmed an academic paper concluding that in the event of sweeping tax changes home ownership rates would rise from 66.7 per cent to 72.2 per cent, and it brought to mind what Nassim Nicholas Taleb coined the Ludic Fallacy, the "dark side of… full article