Capricorn group addresses investment biases

Martin Endjala

The Capricorn Group has specified that in today’s swiftly changing finance and investment landscape, recognizing the influence of biases and emotions on decision-making is more pivotal than ever.

To address this, the Capricorn Group, in collaboration with its subsidiary, Capricorn Asset Management, hosted an Inspire event themed “Exploring Biases in Investment Decisions.” This event was aimed at addressing and understanding biases inherent in making investment choices.

Relf Lumley, Chief Investment Officer at Capricorn Asset Management, highlighted the significance of behavioral finance in determining market outcomes.

He ventured that astute and informed decision-making in investment requires an awareness of how inherent biases might inadvertently influence our savings and investment decisions.

“Behavioral finance offers insights into how financial choices, encompassing areas like investments, payments, risk, and personal debt, are deeply affected by human emotions, inherent biases, and cognitive constraints in assimilating and acting upon information,” Lumley said.

He reaffirmed the bank’s commitment to enriching its stakeholders by holding sessions like these in conjunction with Capricorn Asset Management. Currently, the portfolio managed by Capricorn Asset Management is valued at an estimated N$40 billion.

Lumley also delved into behavioral concepts such as mental accounting, self-attribution, herd behavior, and the emotional gap, elucidating how they can lead to irrational investment decisions.

He acknowledged the success of Capricorn Group’s Inspire sessions in bringing forward intriguing topics delivered by specialists in diverse sectors, acting as catalysts for positive transformation.

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