What can a World War I fighter pilot teach you about investing? The Red Baron built his success on discipline, structure, and stacking the odds in his favour, but lost everything in a single moment of emotion. In this episode, Tim and Nick explore how investors face the same temptations, and why diversification, low costs, liquidity, and rebalancing matter most when markets feel easy. Tune in for a powerful reminder that the biggest risk to your wealth is not the market, it is your behaviour.

(00:01:43) Nick’s fascination with the Red Baron and personal connection

(00:04:16) Core combat rules: stacking odds and disciplined decision making

(00:08:26) Psychological edge: the significance of the red plane

(00:11:51) Investing parallel: diversification as numerical superiority

(00:13:07) Fees, liquidity, and the impact of cost on returns

(00:15:03) Rebalancing and managing behavioural bias

(00:17:09) Facing market downturns with discipline, not emotion

(00:20:47) What led to the Red Baron’s downfall

(00:23:53) Lessons from his downfall: abandoning proven principles

(00:25:17) Final lessons for investors: avoid overconfidence and stick to principles

• Nick Stewart (Ngāi Tahu, Ngāti Huirapa, Ngāti Māmoe, Ngāti Waitaha) is a Financial Adviser and CEO at Stewart Group, a Hawke's Bay and Wellington-based CEFEX-certified financial planning and advisory firm. Stewart Group provides personal fiduciary services, Wealth Management, Risk Insurance and KiwiSaver solutions.

The Adviser Talk is available on all major streaming platforms, including Spotify and Apple Music.

The information provided, or any opinions expressed in this show, are of a general nature only and should not be construed or relied on as a recommendation to invest in a financial product or class of financial products. You should seek financial advice specific to your circumstances from an Authorised Financial Adviser before making any financial decisions. A disclosure statement can be obtained free of charge by calling 0800 878 961 or visiting our website, www.stewartgroup.co.nz

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