The Art of Making Good Investment Decisions

Abstract

Making the right calls in investments is an art. It helps to apply a good process. It also helps to have an academic understanding on how markets price risk. Every new decision is unique. As they are forward looking and history never repeat itself, you will always have to take risk. Failing is a part of the game. How you learn from mistakes and improve on the process is an element in the art of investing. To be successful as investor you need a wise understanding of who you are and how cognitive biases might affect yourself and the investment process.

I’m intrigued by the complexity of investment decision making. Many thanks for inviting me to speak on this topic today. It gives me an opportunity to stop and reflect over the various experiences I have made during my life as investor and leader of investment organizations. When we now make this journey together you will sense my passion for the topic! I recall with pleasure quite many seminar presentations to CFA societies various places in Europe and have always enjoyed the interaction with an audience willing to dig deep into the core of financial theory and practice.

Keywords: investments, portfolio management

JEL Classification: G