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The Little Book of Behavioral Investing

byJames Montier

James Montier introduces the psychological biases that undermine investment performance and offers practical defenses against them. He examines overconfidence, confirmation bias, loss aversion, anchoring, forecasting errors, herd behavior, and the temptation to act when patience would be better. Rather than expecting investors to eliminate emotion, Montier recommends processes that make good behavior easier: checklists, predetermined valuation rules, written reasoning, and attention to base rates. The book translates behavioral-finance research into a compact discipline for protecting decisions from predictable mental errors, especially during market extremes when intuition feels most compelling and is often least reliable.

Publisher

John Wiley & Sons, Ltd.

Publication date

2010

Format

Print edition

Pages

236

ISBN

9780470686027