Behavioural Finance

The High Cost of Behaviour.

The greatest cost of all to a client – larger than fund fees, the tax drag, or the performance gap between passive and active funds – is the loss due to investor behavior.

Human behaviour and our response to what is happening around us, plays a very significant role in the success and/or failure of our investments and our financial well-being.


People can’t always explain why they do what they do, or what they want.

At Efficient Financial we work with you to maintain a disciplined approach during volatile or turbulent times.

Investors are entitled to a return on their investment and we show you how to achieve this.

Small changes can have large effects.

Behavioural Finance helps us to identify repeated patterns of irrationality, inconsistency and incompetence in ways human beings arrive at decisions and the choices they make when faced with uncertainty.

It attempts to explain how and way emotions and cognitive errors influence investors and create stock market anomalies such as bubbles and crashes.

Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ….
Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing

- Warren Buffet