The Merchants Trust lead manager Simon Gergel explores one of investing’s toughest challenges: maintaining conviction when markets move against you. Simon explains why conviction is not blind faith, but a disciplined process of constantly testing investment ideas, questioning assumptions and separating genuine risks from market noise.
Using Tate & Lyle as a real-world example, Simon discusses how perception can differ from reality, why improving businesses can still see their share prices decline, and how long-term investors can identify opportunities when sentiment turns negative. The conversation also examines the powerful role emotions play in investing, the behavioural biases that influence decision-making, and why successful value investing often requires going against natural instincts.