An old friend has just breezed through the door. The letter box actually. It's the 2013 edition of the UK Stock Market Almanac by Stephen Eckett. It consists of a diary I almost certainly won't use and data I never knew I needed.
Monkey strategy Pete Comley’s new book explains why private investors do so badly in aggregate, and how understanding why can help your investment decisions. I asked him how his research influenced his own investing strategy.
Last year ended introspectively, with a failed trade in Armour that was both expensive and misguided, but before then I felt I was losing my grip on some of the constituents in the Thrifty 30 portfolio.
My resolution this year is a simple one to make and perhaps a more difficult one to achieve. It’s:
Only to add a company to the Thrifty 30, or hold a company, if I can articulate my reasons in less than two minutes in words a teenager can understand.
Maybe simple statistics do trump judgement Every time I read a review of ‘Thinking Fast and Slow’ by Daniel Kahnemann, a psychologist who won the Nobel prize for economics, I think I should read it. Especially in the light of a decision that is weighing heavily on me.
Words of caution from psychologists, but the wisest of all are from a fellow blogger and value investor...“Even the wisest people won’t make good choices when they’re not rested and their glucose is low,” says social psychologist Roy F Baumeister.