32. How to outsmart behavioural biases when investing – with Dr Daniel Crosby
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For many investors, 2025 intensified the behavioural pressures that shape investment decisions. Markets reached record highs, even as global growth slowed and political tides turned across major economies. Amid these contrasts, investors and advisers were reminded just how crucial it is to manage behaviour. Falling prey to inherent behavioural biases and knee-jerk reactions when markets shift are well-known ways to hinder performance and erode returns. In conversation with Allan Gray portfolio manager Tim Acker, leading behavioural finance expert and author Dr Daniel Crosby explores habits and hacks that personal and professional investors can employ to navigate volatile markets, avoid cognitive traps and enhance their long-term investment success.
Chapters
- 00:00 Introduction
- 00:55 From clinical psychology to behavioural finance
- 03:42 The four meta-biases: ego, emotion, attention and conservatism
- 06:24 Loud risks vs. Likely risks
- 10:41 The three E's of behavior change: education, environment and encouragement
- 15:08 Why do experts still make mistakes?
- 19:43 Recency bias in the current market environment
- 22:16 The dangers of high intelligence
- 26:56 Quantifying "adviser alpha"
- 34:51 How often should you look at your statements?
- 48:04 Key takeaways
