Financial decisions are harder than they appear. Emotions, habits, and shortcuts—known as behavioural biases—can quietly influence choices in ways that reduce long-term success. Reliable outcomes require structured, repeatable processes designed to limit the influence of these biases.

That is why our practice is built on a disciplined behavioural framework refined across more than 30 years of market conditions.

How We Manage Bias in Our Investment Process

A structured process for objective decisions

Reducing the impact of bias on financial decisions has been shown to improve the reliability of decisions and the repeatability of investment performance. That is why we not only encourage clients to adopt strategic habits, but also work deliberately to guard against bias within our own investment practice.

The 4 tools we use to manage bias

1. Quantitative Security Selection

We manage each mandate using quantitative security selection and tactical rebalancing. Each security must meet defined criteria and align with the portfolio’s role in the mandate, helping to keep decisions evidence-based rather than reactive.

2. Procedure Flow-Charts for Buy/Sell Discipline

After a security passes our selection criteria, it still must follow a documented procedure flow-chart before we invest.

Similarly, when a security is no longer suitable for the mandate, we sell it—regardless of the current price—avoiding emotional attachment or anchoring.

3. Investment diary and decision logs

We maintain a rigorous investment plan and diary of trade decisions. This log allows us to:

• Record the rationale behind each decision
• Recall the strategy over the security’s time horizon
• Evaluate outcomes honestly and avoid hindsight bias

4. Client documentation and Investment Policy Statements (IPS)

From a client perspective, we collect and maintain thorough notes and scheduled activities to stay aligned with each client’s needs and objectives.

For every client, we develop a customized Investment Policy Statement (IPS).

Your IPS sets:

• The framework for managing your portfolio
• Strategic asset allocation
• Investment strategy
• Key parameters that must remain aligned with your investment objectives and risk profile

Explore Further

You can find out more about when to trust expert advice and which biases can be controlled in Unbiased Investor: Reduce Financial Stress & Keep More of Your Money (2022)

Why Awareness Isn’t Enough - Habits You Can Adopt to Reduce the Effect of Bias

In the animated G.I. Joe series from the 1980s, each episode ended with a short public service announcement. A G.I. Joe hero would rescue a child from a risky situation and explain what they should do differently next time. The child would say, “Now we know!” and the soldier replied, “And knowing is half the battle In real life, we know that simply telling a child not to play in the street doesn’t guarantee they will always remember or follow that advice. The same is true for our financial behaviour. You likely know you should:

Yet, in the moment—when emotions are high or life is busy—these plans can be hard to execute.

Biases can influence decisions when:

The G.I. Joe Fallacy

All new clients receive a copy of Unbiased Investor: Reduce Financial Stress & Keep More of Your Money, by Coreen T. Sol, CFA (Wiley, 2022). You can also purchase copies of Unbiased Investor at your favourite bookstore or download a free copy of Unbiased Habits Checklist. 

Clarifying Your Personal Economic Values (PEV)

Aligning decisions with what matters most

Your Personal Economic Values (PEV) are the principles that guide how you spend, save, invest, and plan for the future. Taking the time to clarify them can make your financial decisions more consistent, meaningful, and aligned with what is truly important to you.

In Chapter 4 of Unbiased Investor, Coreen introduces an eight-step process to help you clarify your PEV.

Step 1: Reflect on what matters most

You begin with guided questions designed to uncover your core motivations, priorities, and financial beliefs.

Step 2-6: Explore influences and constraints

These steps help you evaluate:

• What you believe about money
• What motivates your decisions
• How you perceive and manage risk
• What barriers or patterns hold you back
• How culture, gender, and generational influences shape your financial behaviour

Step 7-8: Create your Personal Economic Value Statement

The process concludes with a clear, personalized statement that becomes the foundation for future decisions—keeping every choice aligned with your values, even during stressful periods.

Clients will receive a complimentary copy of Unbiased Investor: Reduce Financial Stress & Keep More of Your Money (2022) You can purchase additional copies at your favourite bookstore, and download the 8-step workbook to develop your Personal Economic Values free of charge.