The Richards Report

Bonus Episode - January 2019

This episode I'm speaking with Pat Garrett, the CEO of Six Park. We review and discuss what we saw in 2018 from an investing point of view. Topics discussed; The return of volatility in the market Trump Brexit Emerging markets performance The royal commission Bitcoin Hero's and villains in 2018 Six Park's portfolios This episode is brought to you by Six Park, Australia's leading online investment manager. www.sixpark.com.au

The field of Behavioural Economics is so important because, when it comes to investing and managing our money, our emotions have the ability to lead us astray - so much so we could become our own worst enemies. Of course, decisions like a portfolios' asset allocation are crucially important in investing, but ultimately decisions like these are wasted if investors make irrational decisions at the worst possible time. The reality is, biases affect our decisions and we need to be aware of them so they're not in control. I completed a course on behavioural economics earlier this year at Harvard Business School to learn more about the processes we all use to make financial decisions. During the program I was fortunate to learn from some of the best professors in the world on the topic of Behavioural Economics, and I found it so interesting that I thought, why not have a chat with them on the Richards Report? This episode is the final episode of a four part series that I've put together. This episode I speak with Michael Norton, the Professor of Business Administration at the Harvard Business School, and a member of Harvard's Behavioral Insights Group. He co-wrote Happy Money: The Science of Smarter Spending. He has also given a famous Ted Talk on money and happiness that has been watched more than 5 million times (links available in the show notes on the Six Park website). Topics Covered include; Investing in time The Ikea effect Can money buy happiness? This podcast is brought to you by Six Park, Australia's leading online investment manager. Visit www.sixpark.com.au

The field of Behavioural Economics is so important because, when it comes to investing and managing our money, our emotions have the ability to lead us astray - so much so we could become our own worst enemies. Of course, decisions like a portfolios' asset allocation are crucially important in investing, but ultimately decisions like these are wasted if investors make irrational decisions at the worst possible time. The reality is, biases affect our decisions and we need to be aware of them so they're not in control. I completed a course on behavioural economics earlier this year at Harvard Business School to learn more about the processes we all use to make financial decisions. During the program I was fortunate to learn from some of the best professors in the world on the topic of Behavioural Economics, and I found it so interesting that I thought, why not have a chat with them on the Richards Report? This episode is the third episode of a four part series that I've put together. This is the last episode that i'm speaking with John Beshears, an Associate Professor of Business Administration in the Negotiation, Organizations & Markets Unit. Before joining HBS, he was an assistant professor of finance at the Stanford Graduate School of Business. His recent work includes studying participation in retirement savings plans, household investment decisions, and health-care choices. Topics covered include; Recency bias Present bias New Year resolutions This podcast is brought to you by Six Park, Australia's leading online investment manager. Visit www.sixpark.com.au

The field of Behavioural Economics is so important because, when it comes to investing and managing our money, our emotions have the ability to lead us astray - so much so we could become our own worst enemies. Of course, decisions like a portfolios' asset allocation are crucially important in investing, but ultimately decisions like these are wasted if investors make irrational decisions at the worst possible time. The reality is, biases affect our decisions and we need to be aware of them so they're not in control. I completed a course on behavioural economics earlier this year at Harvard Business School to learn more about the processes we all use to make financial decisions. During the program I was fortunate to learn from some of the best professors in the world on the topic of Behavioural Economics, and I found it so interesting that I thought, why not have a chat with them on the Richards Report? This episode is the second episode of a four part series that I've put together. I'm speaking again with John Beshears, an Associate Professor of Business Administration in the Negotiation, Organizations & Markets Unit. Before joining HBS, he was an assistant professor of finance at the Stanford Graduate School of Business. His recent work includes studying participation in retirement savings plans, household investment decisions, and health-care choices. Topics covered include; Why do we overweight small probabilities happening (e.g.lotteries) Projection bias Confirmation bias This podcast is brought to you by Six Park, Australia's leading online investment manager. Visit www.sixpark.com.au

The field of Behavioural Economics is so important because, when it comes to investing and managing our money, our emotions have the ability to lead us astray - so much so we could become our own worst enemies. Of course, decisions like a portfolios' asset allocation are crucially important in investing, but ultimately decisions like these are wasted if investors make irrational decisions at the worst possible time. The reality is, biases affect our decisions and we need to be aware of them so they're not in control. I completed a course on behavioural economics earlier this year at Harvard Business School to learn more about the processes we all use to make financial decisions. During the program I was fortunate to learn from some of the best professors in the world on the topic of Behavioural Economics, and I found it so interesting that I thought, why not have a chat with them on the Richards Report? This episode is part one of a four part series that I've put together. I speak with John Beshears, an Associate Professor of Business Administration in the Negotiation, Organizations & Markets Unit. Before joining HBS, he was an assistant professor of finance at the Stanford Graduate School of Business. His recent work includes studying participation in retirement savings plans, household investment decisions, and health-care choices. Topics covered include; Why do we have biases? The foundations of system 1 and system 2 thinking Loss aversion Status quo bias Heuristics and availability bias This podcast is brought to you by Six Park, Australia's leading online investment manager. Visit www.sixpark.com.au

I'm speaking with Michael Schwimer, the CEO Big League Advance.

Big League Advance is like a venture capital fund, but instead of investing in emerging businesses, they invest in minor league baseball players. They do so by buying a percentage of the players future earning capacity.

When I first heard Michael describe his story and his business I was that excited to find out more. It's certainly not an investment strategy for everyone as it's high risk/high reward, but it's a really interesting concept.

Big League Advance continues to receive recognition around the world, and be approached from other sports wanting to improve in their analytics and data analysis. They've been approached by soccer federations wanting to better prepare for the next world cup and NBA teams looking for an edge over competitors.

This episode is bought to you by Six Park, Australia's leading online investment management provider. www.sixpark.com.au

Here is a preview of an upcoming episode with Michael Schwimer, the CEO of Big League Advance.

This episode we're chatting 'Moneyball'.

What about it?

Well, in baseball they talk about the "intangibles" that players may or may not have. He or she has the "it" factor. It's a gut feel that has usually been accepted and often embraced by recruiters and teams.

But Moneyball, in particular Billy Beane and his team at the Oakland A's questioned this widely accepted "gut feel" and how accurate it really is. As we know he and his analytics team famously went out on a limb at the time and used data to make baseball recruiting decisions, not on this gut instinct or the "it" factor. The idea of an algorithm or computer supporting important sporting recruiting decisions was initially laughed at. But since the Moneyball story became well known it's now not only accepted, but embraced. This approach has quickly spread into other sports too.

This episode I'm joined by Chris Keane, the senior recruiting analyst at the Sydney Swans who, as you may have guessed it, has an analytics background, not a football background.

New approaches to traditional ways we go about things can sometimes be perceived as wrong, when in fact they may may in fact improve the decision we're trying to make. Whether it's recruiting the next best AFL player, or making the your next investment. We're increasingly seeing data being embraced as a way to improve our decision making.

Show notes are avaiable here

This episode is bought to you by Six Park, Australia's leading robo-advisor.

Episode Show notes

Instead of the usual format with Ted asking the questions, listeners have sent in questions for Ted to answer this episode. Questions include; - Ted's first investment, and why he wants to forget it - His favourite investing podcasts from around the world - Investing for children - Athletes and money/investing - Difference between a robo-advisor and a "human" advisor. This episode is bought to you by Six Park - Australia's leading robo-advisor. www.sixpark.com.au