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About the Author
Robert Van Munster
Head of Equities, Tyndall Asset Management Limited
Robert Van Munster is head of Tyndall Equities has overall responsibility for managing the Tyndall intrinsic value equity portfolios. He is involved in stock selection, controlling risk, portfolio construction and stock analysis, as well as managing the investment team and Tyndall's process and process improvement. Van Munster has over 35 years' industry experience. From 1989-94 he was head of the top-performing Legal and General Value equities team. He then moved into stockbroking research at BZW as an equity strategist and was head of industrial equities at County Investment Management before joining Tyndall in 1999.
Articles Published
Showing results 1 to 2 of 2
Understanding "Greed and Fear' - the key to successful investing
Van Munster, head of Australian equities at Tyndall Investments, looks at the affect that investor emotions take on their own behaviour and, in turn, the behaviour of markets.
The GFC and the subsequent ... Read moreVan Munster, head of Australian equities at Tyndall Investments, looks at the affect that investor emotions take on their own behaviour and, in turn, the behaviour of markets.
The GFC and the subsequent investor attitudes have highlighted two of the most extreme emotions by investors: that of greed (associated with good times, optimism and hope) followed by fear (reflective of uncertainty and pessimism) – with the former playing a role in causing the latter.
In this paper, Van Munster assess the emotional side of the investor and how best to manage them for the benefit of wealth management.
Greed and Fear: Anchoring and Aversion to Ambiguity
Emotions and investor psychology can play a powerful role in driving share market returns and the sharp rebound in 2009 could see a return to ‘greed’, after two years of ‘fear’. Read moreEmotions and investor psychology can play a powerful role in driving share market returns and the sharp rebound in 2009 could see a return to ‘greed’, after two years of ‘fear’. In this paper, Robert Van Munster, head of Tyndall Equities, looks at two types of behaviour: ‘anchoring and adjustment’; and ‘aversion to ambiguity’. Both of these heuristics (or ‘rules of thumb’ often gained from trial and error) have a strong influence on investor behaviour and the choices they make and investors need to be aware of these in upturns as well as downturns, as they can lead to conservatism, disappointment and insufficient diversification. Van Munster writes that identifying and understanding these behaviours can not only assist with making more informed and rational decisions, but can also provide an edge over other investors. Many of these behaviours are, however, entrenched. Seeking independent financial advice and investing with a professional fund manager are steps investors can take to reduce the role these behaviours play in their decision-making process.
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