James Montier

BEHAVIOURAL INVESTING
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By  James Montier 
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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
Author James Montier  BindingHardcover
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By James Montier
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Ben Graham, the father of value investing, once said: "The investor's chief problem and even his worst enemy is likely to be himself." Sadly, Graham's words are still true today. Bias, emotion, and overconfidence are just three of the many behavioral traits that can lead investors to lose money or achieve lower returns. Fortunately, behavioral finance, which recognizes that there is a psychological element to all investor decision making, is now firmly embedded in the mainstream of finance. Applying behavioral principles to an investment portfolio can help investors avoid some of the mental pitfalls that so often cost them, and financial institutions, billions. In The Little Book of Behavioral Investing, behavioral finance expert James Montier takes you on a guided tour of the most common behavioral challenges and mental pitfalls that investors encounter, and provides you with strategies to eliminate these traits. Along the way, he shows how some of the world's best investors have tackled the behavioral biases that drag down investment returns, so that you might be able to learn from their experiences. Page by page, Montier explains the importance of learning to prepare, plan, and then commit to a strategy that is, do your investment research while you are in a "cold" rational state, when nothing much is happening in the markets and then pre-commit to following your analysis and action steps. He also stresses the folly of trying to forecast what the markets will do, and reveals how the idea of investing without pretending you know the future gives you a very different perspective. Throughout the book, Montier stresses why the need to focus on process rather than outcomes is critical in investing. Focusing upon process, he shows, frees us up from worrying about aspects of investment that we really can't control such as returns. By focusing upon process, we maximize our potential to generate good long-term profits. The Little Book of Behavioral Investing offers a range of time-tested ways to identify and avoid the pitfalls of investor bias. By following these simple strategies, you will learn to overcome your own worst enemy when it comes to investments yourself.
AuthorJames Montier BindingHardcover