Panthera Solutions named again “Best Financial Service Provider Europe” at The European Awards 2020, are Applied Behavioral Finance specialists based in the Principality of Monaco. They work exclusively with professional investors on transforming the decision-making strategy of an investor, while further developing their skillset. 

Born out of various demand from their clients regarding best strategy to deploy under the Covid-19 crisis, Panthera Solutions are sharing with us this valuable insight on how 3 very simple tips can significantly improve investment decision-making

Investment decision-making tip No:1

‘’Stop Multi-Tasking’’ – Stop rapid task switching and carve out focused segments of time to efficiently deal with priorities & deadlines. A short attention span equals strained and limited resources.

Although we are indeed in the middle of a worldwide raging pandemic, the real danger of our times, or should I say the real epidemic of our times, is none other than multi-tasking. There is overwhelming evidence on the pitfalls of multi-tasking, yet in today’s fast-paced technology driven world, we multi-task more than ever to the detriment of our decision-making ability.

Most people’s morning routine consists of randomly sifting between varying devices checking emails, Slack feed, posting on Instagram while watching YouTube, listening in the background to news updates, before checking in on one of Donald Trump’s standard twitter meltdowns. All before their first cup of coffee. This information overload continues to build during the day, as more and more Bloomberg chat notifications or social media alerts reverberate around us, not to mention the pressure of squeezing in endless zoom meetings that our world now engages in.

With all this rapid task switching our ability to stay focused is severely diminished. In fact, our productivity level profoundly decreases while the likelihood of cognitive ‘’overarousal’’ increases.

There are two other types of multi-tasking that are less harmful, or even to be facilitated.

‘’Genuine Multi-tasking’’ (talking on speaker phone while driving the car) is doable without a.

‘’Managing Multiple Projects Multi-tasking’’ (allocating blocks of specific time to separate projects serially) can even have a positive impact on outcomes.

The most common form of multi-tasking, namely by rapidly switching between tasks, is where your productivity is invariably reduced. For a professional investor, switching rapidly between constant information overload and at the same time keeping focus is not only complex, its impossible.

The ideal way to combat this is by carving out blocks of uninterrupted time during the day, in order to target key areas and priorities. Whether it be for reading, brainstorming or inbox clean-up, that time should be used in an undisturbed manner to efficiently focus on the actual task at hand.

Investment decision-making tip No:2 – Having skin in the game shows commitment and a strong desire to see the investment succeed.

What sets the best apart in their field? The Warren Buffets, the Rafael Nadals, the Richard Bransons? They are all prepared to put it on the line by having ‘’skin in the game’’. If their investments /ventures or decisions fail, they will feel the negative consequences of their decisions. When choosing what to invest in, knowing the top decision-makers have ‘’skin in the game’’ and are willing to incur risk, is an important factor to consider. Having ‘’skin in the game’’ shows strong commitment to the business or project at hand, and that speaks volumes to other investors.

Investment decision-making tip No:3 – Use to-do lists to create the environment that puts you in control of your daily output and see your performance levels increase.

To-do lists sound incredibly simple for an investment decision-making tip, but they are an essential tool in today’s world of information overload. As we have covered in Multi-tasking above, the complexity of our lives today can lead to an overpowering sense of disorganization, bewilderment and confusion.

By creating a to-do list and prioritizing the important tasks of the day, your mind instantly feels more relaxed and in control, giving you a sense of stability while allowing you to focus on the crucial assignments at hand. Not only does this reduce stress levels, it allows us to break down large overwhelming undertakings into smaller blocks, thus preventing procrastination & overload fatigue.

By writing down the ‘’to-dos’’ of the day, no matter how small or large, we are signalling to our brain to stop the ‘’constant over-thinking’’ about what we need to remember & accomplish before the day is out. This allows for enhanced cognitive function with a heightened sense of energy & concentration deployed where needed. Equally, by prioritizing the daily agenda, we are able to allocate solid periods of time to certain tasks, laying the foundation for valuable routines to be incorporated.

Importantly for a professional investor, three words can sum up why to-do lists are an essential component in performing at your best. Reliability. Deadlines. Accountability. Reliability & accountability in a pressure-cooker environment are critical. Being able to stay on top of deadlines and work schedules are where to-do lists become invaluable.

As previously mentioned, we all have too many projects, goals and first & foremost too many distractions coming at us constantly. To be able to meet those deadlines, keep productivity levels high and exhibit laser-like focus (while keeping your sanity and personal life in tact) we suggest making a to-do list and establishing those quality routines. And watch your day be transformed as if by magic into manageable effective segments.

Article: Panthera Solutions