Michel Pireu Columnist

From Joe Wiggins at Behavioural Investment comes five ideas, influenced by behavioural science, which could lead to better long-term investment decisions: Check your portfolio less frequently. Quite simply — the more frequently we check our portfolios, the more myopic and risk averse we are likely to become in our decision-making. Don’t make emotional decisions. How we "feel" can have a material influence on the manner in which we perceive risks and assess opportunities. If there is any chance that emotion is overwhelming your thinking — postpone the decision. If the idea was a good one, it is still likely to be tomorrow, or next week. Make doing nothing the default. The more we are bombarded with news, information and opinion the greater the temptation to be busy fools and justify our role as investors by taking action, any action. For many reasons doing nothing often seems to be hardest decision to come to, but is often the correct one. Choose sensible reference points. "Whilst yo...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now