'Buy Low Sell High' Sounds Simple, But Investors Need a Framework

Douglas Isles, one of Platinum's Investment Specialists, presents at the Portfolio Construction Forum in Sydney, Australia on 15th February 2017.

Despite increased awareness of behavioural finance, evidence confirms investors' poor timing with managed funds due to performance chasing. The world is probabilistic, but industry communication revolves around forecasts, opinions and outcomes, over-emphasising recent success. Markets present huge challenges – dealing with social pressures, processing information and timeframes. Clients benefit from understanding the investment journey. Most learn via anecdote and analogy - but key knowledge includes the range of outcomes and coping with feelings of loss aversion and FOMO. Having prepared responses to scenarios improves the chance of success. This framework is simply "Buy Low, Sell High".

View Douglas' presentation below:

DISCLAIMER: The above information is commentary only (i.e. our general thoughts). It is not intended to be, nor should it be construed as, investment advice. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Before making any investment decision you need to consider (with your financial adviser) your particular investment needs, objectives and circumstances. The above material may not be reproduced, in whole or in part, without the prior written consent of Platinum Investment Management Limited.