The caveman in your portfolio: Why behaviour sabotages returns - Alec Cutler | Orbis Investments

Investing is as much behavioural as it is academic. Some of the smartest investors and advisers have found themselves undone as they lose their mind in the noise of markets. Today's guest wants us to take a deep breath, recognise our cognitive biases and focus on the principles of good long-term investing.

Today we're joined by Alec Cutler, Director at Orbis Investments and manager of the Orbis Global Balanced Fund.

We speak to Alec about:

• Why good investors often underperform the market
• The most common cognitive biases he sees
• How the Orbis Investments team use process to recognise their own biases
• The risk of being too concentrated in large-cap US stocks
• What we can all do to improve diversification in our portfolios

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CPD Points: This episode has been accredited for CPD points by the Financial Advice Association of Australia (FAAA).

To claim your points, complete the CPD Quiz and we'll send you your certificate.

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This episode has been sponsored by Orbis.

If you would like to learn more about Orbis' contrarian investment approach can offer a true point of diversification when constructing client portfolios, click here.

Thank you to Orbis for helping us keep all of our content free and accessible.

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Basis Points is a product of Equity Mates Media. Basis Points is intended solely for industry professionals, financial advisers and wholesale investors. 

 

This podcast is intended for education and entertainment purposes. Any advice is general advice only and has not taken into account your personal financial circumstances, needs or objectives. Before acting on general advice, you should consider if it is relevant to your needs and read the relevant Product Disclosure Statement and Target Market Determination. And if you are unsure, please speak to a financial adviser. There are risks with any investments, including one in the Orbis funds. Past performance is not a reliable indicator of future performance and the value of any investment in an Orbis fund is not guaranteed.

 

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