Platinum Asset Management

Of all the challenges an investor faces, the most difficult to overcome are often those in our psychology. Ask yourself ‘Do I do this?’

Loss aversion: According to empirical evidence, the pain of losing $100 is felt more than twice as much as the pleasure of gaining the same amount (Kahneman and Tversky, 1992).

Sadly, this irrational approach is evident in the stockmarket. Many investors keep hanging on to losing stocks in the hope that, some day, somehow, they will bounce back. Such is the distaste for loss that it causes a mental freeze which renders people incapable of sound judgement.

Loss aversion is a common condition. Think about it – facing a loss, do you sometimes freeze and refuse to acknowledge reality?

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The energy utilities sector is facing enormous challenges over the coming decades as we undertake the carbon transition. Liam Farlow and Ben Robinson discuss these challenges and opportunities, drilling down into one of our holdings, AGL Energy.

Video - Energy Utilities Leading Disruption in Carbon Transition The energy utilities sector is facing enormous challenges over the coming decades as we undertake the carbon transition. Change, fear, and investors’ perceptions and valuatio…...