Behavioural Investing: A Practitioner's Guide to Applying Behavioural Finance

Behavioural Investing: A Practitioner's Guide to Applying Behavioural Finance

Author(s): James Montier

Published Online: 15 APR 2013 01:27PM EST

Print ISBN: 9780470516706

Online ISBN: 9781118673430

DOI: 10.1002/9781118673430

About this Book

Behavioural investing seeks to bridge the gap between psychology and investing. All too many investors are unaware of the mental pitfalls that await them. Even once we are aware of our biases, we must recognise that knowledge does not equal behaviour. The solution lies is designing and adopting an investment process that is at least partially robust to behavioural decision-making errors.

Behavioural Investing: A Practitioner's Guide to Applying Behavioural Finance explores the biases we face, the way in which they show up in the investment process, and urges readers to adopt an empirically based sceptical approach to investing. This book is unique in combining insights from the field of applied psychology with a through understanding of the investment problem. The content is practitioner focused throughout and will be essential reading for any investment professional looking to improve their investing behaviour to maximise returns. Key features include: 

  • The only book to cover the applications of behavioural finance
  • An executive summary for every chapter with key points highlighted at the chapter start
  • Information on the key behavioural biases of professional investors, including The seven sins of fund management, Investment myth busting, and The Tao of investing
  • Practical examples showing how using a psychologically inspired model can improve on standard, common practice valuation tools
  • Written by an internationally renowned expert in the field of behavioural finance

Table of contents

    1. You have free access to this content
  1. Part I: Section I: Common Mistakes and Basic Biases

  2. Part II: Section II: The Professionals and the Biases

  3. Part III: Section III: The Seven Sins of Fund Management

  4. Part IV: Sin 1: Forecasting (Pride)

  5. Part V: Sin 2: Illusion of Knowledge (Gluttony)

  6. Part VI: Sin 3: Meeting Companies (Lust)

  7. Part VII: Sin 4: Thinking You Can Outsmart Everyone Else (Envy)

  8. Part VIII: Sin 5: Short Time Horizons and Overtrading (Avarice)

  9. Part IX: Sin 6: Believing Everything You Read (Sloth)

  10. Part X: Sin 7: Group Decisions (Wrath)

  11. Part XI: Section IV: Investment Process as Behavioural Defence

  12. Part XII: Part A: The Behavioral Investor

  13. Part XIII: Part B: The Empirical Evidence: Value in All its Forms

  14. Part XIV: Part C: Risk, But not as We Know it

  15. Part XV: Section V: Bubbles and Behaviour

  16. Part XVI: Section VI: Investment Myth Busters

  17. Part XVII: Section VII: Corporate Governance and Ethics

  18. Part XVIII: Section VIII: Happiness

    1. You have free access to this content
    1. You have free access to this content

SEARCH