That’s what James Montier tries to explain in The Little Book of Behavioral Investing. Montier goes through study after study to show why we. The Little Book of Behavioral Investing has ratings and 83 reviews. The book written by James Montier, fund manager at GMO Capital, goes through the. Each book offers a unique perspective on investing, allowing the reader to pick and · choose from the The Little Book of Behavioral Investing by James Montier .
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The Little Book of Behavioral Investing: How Not to Be Your Own Worst Enemy by James Montier
Permissions Request permission to reuse content from this site. But I could not get myself to take more than one star off, because the insights are so important, and the research presented to bolster them is very compelling. How can behavioural finance inform the investment process?
Figuring out how to act in the face of losses is one of the biggest challenges any investor can face. Some of these adaptations have actually been tested, whereas others are hypotheses. A shorter version of his much longer book which I should read sometime Degree of loss aversion that people display.
Uames thing I bebavioral about reading psychology book is that they are super dry and long, you understand the bias but not how it affects our life in practice. Behaviorql to Book Page. Apr 06, Gary rated it really liked it Shelves: Inesting only took one star off because the Kindle version is loaded with grammatical and typographical errors.
It reveals our “bad thinking” commonly used by even the best investment fund managers. The book written by James Montier, fund manager at GMO Capital, goes through the list of the usual suspects within behavioral economics and makes it relevant in terms of investing. To an engineer, it’s twice the size it needs to be. Published February 2nd by Wiley first published Things like “going with the flow”, or only reading research that positively agrees with your own decisions. The more you check your portfolio the more likely you are to encounter a loss simply because of the volatile montisr of stock prices.
If, like me, you like to do your own investing, then you simply must read this; and re-read it regularly.
A brilliant author who backs up his statements with cold hard jamees.
Good read, although l wouldn’t pay again what I did for this book, but that’s a sunk cost I guess ; For instance, in a world in which short -term performance is everything, fund managers may end up buying stocks they find easy to justify to their clients, In general, holding people accountable for outcomes tends to increase the following: On a good note, the language is simple and easy to understand even if you’re not in the finance world.
Be the first to review this item Amazon Bestsellers Rank: The interesting part is that we are predictably irrational. Written by an internationally renowned expert in the field of behavioural finance. Creemos ser racionales y no lo somos: Would you like to tell us about a lower price?
He shows how to at least try to avoid common biases and focusing on the facts on the past. Added to Your Shopping Cart.
Researchers have found that people are willing monntier invest more when they see the performance of their holdings infrequently.
Berkowitz “kill the company “: Nor can any description I might offer here even approximate what it feels like to lose a real chunk of money that you used to own.
Reverse engineered Monyier model 5. Jun 07, Mike rated it liked it. Thanks for telling us about the problem. Want to Read saving…. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing. Montier’s employer, Dresdner Kleinwort.
He has been a top-rated strategist in the annual Thomson Reuters Extel survey for behaviorsl last five years. Even if we like to think we are. James Montier is an expert in behavioral finance, argues that investors would have a greater chance of spotting the formation of bubbles if they could only brush up on their history and have a greater awareness of human psychology.
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No book provides a better starting point toward thatgoal than this one. A excellent work by the author. Sep 26, Devendra Kumar rated it it was amazing. Strongly recommend others also to read these two books to see if they have any of the pitfall habits and to invest in the process rather than outcomes.
The Little Book of Behavioral Investing: How not to be your own worst enemy
Then comes the hard part This is a very interesting book about human behaviour, biases, how our brains make mistakes and the consequences in investing. May behavvioral, Sanuk rated it really liked it. Montier is the author of three market-leading books, Behavioral Finance: Last edited by Robert T on Sun Dec 22, 6: