Home Bias - Episode 8 | Season2

Home bias is just what it sounds like – you prefer to choose things that are closer to home. For investing, this can mean that you have too many assets in your portfolio that are linked to the country you’re living in or the company you work for – and this can lead to major problems. 

One of Gizelle’s former PHD students, Shreeya Jugnandan, is our guest for this episode. Shreeya actually unpacked Home Bias for her thesis. She found some interesting stats when looking at how South African’s invest and the disconnect between where they want to live vs where they want to invest their money. She also developed a  and has a practical model to help us combat behavioural biases in your investing decisions.

 

Useful links: 

More about Dr Shreeya Jugnandan: 

• https://www.linkedin.com/in/dr-shreeya-j-b18781102/  
• https://onlinelibrary.wiley.com/doi/10.1111/ijcs.12935  

 

The Causal Impact of Media in Financial Markets - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1462416  

More on the collapse of Silicon Valley Bank: 

• Wall Street Journal - https://www.youtube.com/watch?v=QACGoKb48_0 
• Fortune - https://fortune.com/2023/03/27/silicon-valley-bank-staff-lose-millions-stock-collapse-salary-packages/  

 

More on the studies Shreeya mentions: 

• Exponential growth bias matters: Evidence and implications for financial decision making of college students in the U.S.A - https://doi.org/10.1016/j.jbef.2018.04.002
• How to decrease the amortization bias: Experience vs. rules - https://doi.org/10.2139/ssrn.2421214
• A study on the impact of investment experience, gender, and level of education on overconfidence and self-attribution bias - https://doi.org/10.1016/j.iimb.2015.09.001
• Trading performance, disposition effect, overconfidence, representativeness bias, and experience of emerging market investors - https://doi.org/10.1002/bdm.561 

 

Be sure to like this episode and hit the subscribe button to get notified when the next episode drops. 

You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/mitigating-bias/   

Or watch to the video version of this podcast episode: https://youtu.be/AVkqODKbfE8 

 

Special thanks to everyone who has helped put this series together:     

• Our sponsor: IG Markets South Africa     
• Producer: Faeron Wheeler of F Creations     
• Original music and sound mix: Neil Leachman 
• Video and editing: Deetlefs Smith and Matthew Carew 
• Hair and makeup: Ida Webster     
• Set styling: Michelle Murray of Interiors Etc.   
• Voice over: Sizo Mphti