Investors do not buy on impulses or tips: Invest where you have a competitive advantage based on your ability to analyse a company, not on a wim or tip from a friend, newspaper or broker.
Investors avoid ‘pass-the-parcel’ shares Shares that have a great deal of upward momentum, which is sustained by people thinking that they can sell out at a higher price because current excitement will keep pushing the share forward (rather than based on fundamental qualities) are to be given a wide berth. Investors don’t close their minds to disconfirming evidence Once a share is bought there is a natural human tendency to avoid looking at or ignoring evidence that does not confirm our original investment thesis; we have a psychological aversion to the idea that we made a wrong decision. But it is important to keep an open mind; to be receptive to disconfirming evidence. ‘Don’t be too stubborn about your views but don’t lose all your conviction. Ideally, your conviction level should be around the 50 per cent level (where 0 per cent equals no conviction and 100 per cent means you are so convinced you would never change your view).’ (Anthony Bolton) Investors accept cr e to edit.
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Glen ArnoldI'm a full-time investor running my portfolio. I invest other people's money into the same shares I hold under the Managed Portfolio Service at Henry Spain. Each of my client's individual accounts is invested in roughly the same proportions as my "Model Portfolio" for which we charge 1.2% + VAT per year. If you would like to join us contact Jackie.Tran@henryspain.co.uk investing is about making the right decisions, not many decisions.
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