Lessons learnt

In AFR reporter Lucy Dean’s recent article, she interviews nine pro investors asking them to reveal the one thing they wish they’d known sooner.

Talaria Co-CIO Hugh Selby-Smith was part of the group, adding some salient wisdom about the need for a consistent process, and preserving capital in the down periods.

“Starting out in the investment industry with the Dot com bust still to come was incredibly exciting – both intellectually and emotionally. The thrill of being involved with smart and competitive people who ‘won and lost’ each day was very seductive.

“However, it was also the perfect environment to lose a sense of balance and to be swayed by one’s emotions if you let it. Bad things can and do happen.

“The secrets to long term consistent wealth creation are avoiding loss and understanding the value of having cash to deploy when others don’t.

“At the end of the day the biggest battle one faces in financial markets are one’s emotions and biases. Have a process that you trust, works for your temperament, and stick to it.”

See the full article here.