Behavioural Investing: A Practitioners Guide to Applying Behavioural Finance (The Wiley Finance Series)

Behavioural Investing: A Practitioners Guide to Applying Behavioural Finance (The Wiley Finance Series)
by James Montier

Behavioural Investing: A Practitioners Guide to Applying Behavioural Finance (The Wiley Finance Series)
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Book Summary Information

Author: James Montier
Edition: Hardcover
Audio: English (Original Language); English (Unknown); English (Published)
Published: 2007-11-16
ISBN: 0470516704
Number of pages: 728
Publisher: Wiley

Book Reviews of Behavioural Investing: A Practitioners Guide to Applying Behavioural Finance (The Wiley Finance Series)

Book Review: The Best Book on Investing I've Ever Read
Summary: 5 Stars

And I have read well over a hundred. This is not an inexpensive book, but it is worth every penny. Montier writes with wit, enthusiasm, and clarity in describing his views on the investing climate and research he has conducted on finding alpha. He has strongly held opinions which are often at odds with the industry, and he is not afraid to put forth viewpoints that render the great majority of equity analysts as useless tools of the companies they cover. As an alternative he offers a variety of relatively simple quant-based strategies which he shows have historically trounced both index-based benchmarks and stock-picking analysts. He even throws in a little philosophy at the end of the book which are truly words to live by. This is a terrific book that you will keep going back to in the years to come.

Summary of Behavioural Investing: A Practitioners Guide to Applying Behavioural Finance (The Wiley Finance Series)

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

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