132. The psychology of Robinhood traders and why Baby Boomers fear inflation

In a slightly different format to the usual Investing on the Go podcast, Morgan Housel, the author of The Psychology of Money, and Mick Dillon, manager of Brown Advisory Global Leaders fund discuss behavioural finance and the psychology of money. They cover 19-year-old Robinhood investors trading 5,000 a month and why long-term investing is not intuitive to young people, why Baby Boomers are more worried about inflation than Millennials or Generation X and why the fight for an analytical edge in investing is becoming absurd.
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Brown Advisory Global Leaders fund is a high conviction portfolio of 30-40 stocks, which invests in businesses from around the world that deliver exceptional outcomes for their customers. The managers invest for the long-term in companies which can compound their returns for many years to come. The managers also use a third-party consultant to regularly analyse their decision-making for behavioural errors.

Read more about Brown Advisory Global Leaders

What’s covered in this podcast:

  • Why, when it comes to investing, things are always changing, but when it comes to human behaviour, nothing changes at all [0:43]
  • What impact the boom in individual traders taking more risk could have [1:45]
  • Why long-termism in investing is not intuitive to young traders [5:36]
  • How having a long-term time horizon could give you an investment edge [7:24]
  • Why understanding the history of market volatility is important [10:39]
  • How our own personal histories can impact our attitude to risk [15:28]
  • What the way companies treat their employees can tell us about the firm’s long-term prospects [19:33]
  • How your best work may be done sitting on a couch with your eyes closed [21:50]
  • Why the analytical side of investing has been solved but the behavioural side may never be understood [23:47]
  • The importance of knowing when you have enough and being happy with your lot [27:30]
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