Human Behaviour and Mispricing

We are less concerned with the psychological reasons investors are irrational and more concerned with the results: mispriced stocks.

Irrational human behaviour can lead to mispricing between a stock price and a company’s actual value. The large gaps are not based in logic: companies’ underlying values simply do not alter to a large degree over the short term, but their stock prices can fluctuate dramatically.

Sionna takes advantage of this phenomenon because it creates tremendous opportunities for value investors.