HPH Solutions - Investment

Investment

Review

	Review
	"Past performance is no guarantee of future performance" You will have seen this before and this well-worn phrase underlines an important fact about successful investing. Making judgements about your investments by looking backwards is hazardous to your wealth. All investments should be subject to regular review regardless of whether their past performance has been good, bad or ugly. In their publication "Curious Investor Behaviour", Platinum Asset Management comments on the susceptibility of investors to choose assets using past performance as a guide.
	Curious Investor Behaviour No.13 Retrospectascope®: We found the tendency to look ahead through a rear-view mirror so delicious that we registered our own name for it - the retrospectascope®. It comes into play when we indulge in revisiting history to extrapolate future outcomes. Needless to say, this behavioural bias stands in the way of rational investing. Yet, isn't it wonderful to fantasise about what could have been?
	Reviewing your investments periodically is about revisiting the investment selection process and asking yourself, would I invest in this asset again today. When posing this question, it is important to remember that even good companies do not always make good investments. It all depends on the price you pay.