Australian Equities

Australian Smaller Companies and the importance of understanding human behaviour

19/11/2009

David Wanis

David Wanis

Portfolio Manager, Multi-Asset

We all know that human behaviour is important to how businesses and investors make money for one very simple reason.  We are all humans. 

We are all subject to the same biological behaviours as the theoretical actors like the “rational man” we commonly use to project into our investment futures.  However, this is not a business of theoretical actors but rather a business of real people and real people often do not behave like a projection of forecasts on an Excel spreadsheet.  This article delves into why it is so important to understand an investor in small companies.

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