The Little Book of Behavioral Investing
The Little Book of Behavioral Investing explores the most common behavioral challenges and mental pitfalls that investors encounter and provides strategies to eliminate these traits. Page by page, behavioral finance genius James Montier explains the importance of learning to prepare, plan, and then commit to a strategy to be able to engage to the analysis and action steps. He also emphasizes the folly of trying to predict the next move of the markets and asserts how the idea of investing without pretending you know the future gives you an entirely different perspective. Ultimately, Montier emphasizes why the need to focus on process rather than outcomes is critical in investing. Stressing upon process frees us up from worrying about investment aspects that goes beyond our control—such as returns. By focusing upon process, we optimize our potential to generate good long-term profits. This book offers a sweep of proven ways to easily recognize and avoid the risks of investor bias. By heeding these simple strategies, you will learn to conquer your own worst enemy when it comes to investments—yourself.
"The Little Book of Behavioral Investing is an important book for anyone who is interested in understanding the ways that human nature and financial markets interact."
— Dan Ariely, James B. Duke Professor of Behavioral Economics, Duke University, and author of Predictably Irrational
"In investing, success means being on the right side of most trades. No book provides a better starting point toward that goal than this one."
— Bruce Greenwald, Robert Heilbrunn Professor of Finance And Asset Management, Columbia Business School
"'Know thyself.' Overcoming human instinct is key to becoming a better investor. You would be irrational if you did not read this book."
— Edward Bonham-Carter, Chief Executive and Chief Investment Officer, Jupiter Asset Management
"There is not an investor anywhere who wouldn't profit from reading this book."
— Jeff Hochman, Director of Technical Strategy, Fidelity Investment Services Limited
"James Montier gives us a very accessible version of why we as investors are so predictably irrational, and a guide to help us channel our 'Inner Spock' to make better investment decisions. Bravo!"
— John Mauldin, President, Millennium Wave Investments