Behavioural Investing has 96 ratings and 8 reviews. said: James Montier, top ranked investment strategist at – in turn – Dresdner. That’s what James Montier tries to explain in The Little Book of Behavioral Investing. Montier goes through study after study to show why we. Each book offers a unique perspective on investing, allowing the reader to pick and · choose from the The Little Book of Behavioral Investing by James Montier .
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Behavioural Investing by James Montier.
Behavioural Investing by James Montier
Behavioural investing seeks to bridge the gap between psychologyand investing. All too many investors are unaware of the mentalpitfalls that await them. Even once we are aware of our biases, wemust recognise that knowledge does not equal behaviour. Thesolution lies is designing and adopting an investment process thatis at least partially robust to behavioural decision-maki Behavioural investing seeks to bridge the gap between psychologyand investing.
Thesolution lies is designing and adopting an investment process thatis at least partially robust to behavioural decision-making errors. A Practitioner’s Guide toApplying Behavioural Finance explores the biases we face, theway in which they show up in the investment process, and urgesreaders to adopt an empirically based sceptical approach toinvesting.
This book is unique in combining insights from the fieldof applied psychology with a through understanding of theinvestment problem. The content is practitioner focused throughoutand will be essential reading for any investment professionallooking to improve their investing behaviour to maximise returns.
The only book to cover the applications of behaviouralfinance An executive summary for every chapter with key pointshighlighted at the chapter start Information on the key behavioural biases of professionalinvestors, including The seven sins of fund management, Investment myth busting, and The Tao of investing Practical examples showing how using a psychologically inspiredmodel can improve on standard, common practice valuation tools Written by an internationally renowned expert in the field ofbehavioural finance Hardcoverpages.
A practitioners guide to applying behavioural finance The Wiley Finance Series. To see what your friends thought of this book, please sign up.
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Aug 22, InvestingByTheBooks. Too few read books, instead the source of information is papers from investment banks.
Hence there is a need for a bridge between theoretical advances and investment practitioners. For behavioural finance Montier has been this bridge and a whole generation of investment professionals is wiser as a result. This is Montiers second book. The first one builds on a number of lectures in behavioural finance held as a visiting professor at university. The essays are grouped after subject. My only objection is that it could have benefited from at least a small amount of editing.
This is a very minor complaint. To me these essays are like old dear friends and I have read them over and over, even before they were published in a book. In such a way, editing would also have taken something away for me personally. Behavioural Investing is rather an extensive book and large parts are devoted to both individual irrationality and collective behaviours and the bubbles those can create.
In the introductions to his first book, Behavioural Finance, the author describes how he left university a devoted rational expectations-man. Perhaps it is his later conversion that gives Montier the enthusiasm and drive to try to make everybody see the same truth as he saw himself. Everything Montier writes is well researched, clever, unpretentious with a twist of dry British humourentertaining and above all important.
The real strength of the author is when he combines his knowledge of institutional investors and his theoretical knowledge, i. Irrational illusions of how things should be done are exposed for all to see. With investors as audience, what you write have to come to practical use and Montier gives extensive advice on how investment philosophy and process, organisation and incentives could be used to correct the biases investors exhibit.
This could relate to anything from how they should view risk and minimize the use of forecasts to the opinion that they should become value investors.
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Montier in many ways gives a behavioural finance foundation for the value investing discipline. I have long held the view that Montier and Michael Mauboussin at Legg Mason should be locked up in a room, not to be jxmes out until they agree to co- write a book on investments. This should have the potential to become the definitive book on investments of all times.
Jan 02, Joel Mitchall rated it it was amazing. Greatest book on investor psychology ever written in my opinion.
Though it probably does help if you share James Montier’s sense of humour It’s thorough, yet extremely easy to read. Montier not only dives into investor psychology with emphasis on biases and issues this creates for the broader marketbut he also challenges economic theory and provides vast research to back up his claims. This has been my most recommended book on investing for over 10 years. Jan 19, Joel Gray rated it it was amazing.
Far from offsetting each others biases, groups usually end up amplifying them. Members of groups enjoy competency and credibility in the eyes of peers if they provide information that is consistent with the group view. Using groups for stock selection seems to be a handicap on performance. The game behhavioural professional investment is intolerably boring. Our ability to exercise self-control over emotional impulses is limited and decreases with use.
We are wired for the ST. We find the chance of ST gain very attractive. ST gains make us feel confident, stimulated and generally good about ourselves. We also appear to be hard-wired to herd. To buy when others are despondently selling and sell when other are greedily buying requires the greatest fortitude and pays the greatest reward. Be less certain in your views, especially if they are forecasts. People have been found to dislike losses far more than they like gains. We generally don’t even acknowledge that we have made mistakes, let alone learn from them.
High turnover, large portfolios and ST horizons all moontier to illusion of control. Giving forecasting is difficult a mistake is putting forecasting at the heart of the investment process. Over-confidence is whereby people mnotier surprised more often than they expect to be. Deliberation tends to reduce variance.
An investment operation promises safety of capital and a satisfactory return. In the world of deflation time is a killer rather than a healer. Dont equate happiness with money- people adapt to income shifts relatively quickly. Apr 08, Oliver Schnusenberg rated it really liked it. This is one of the most comprehensive books on behavioral investing I am aware of. Packed with not only research study results and practical applications, Mr.
Montier has a knack for showing results in investiing very concise way. I actually used the book in my behavioral finance course. A couple of things could be improved if this text ever goes into a second edition which I hope it does. First, many of the chapters are overlapping and share a lot of the same information.
Addressing this issue could dr This is one of the most comprehensive books on behavioral investing I am aware of. Addressing this issue could drastically cut down on the size of the volume.
Second, and I don’t mean to be nitpicky, in various chapters, the labeling of the graphs is insufficient, and the reader is left trying to figure out the meaning of the graph if not explanation can be found in the text itself. Other than these two points, the text is thoroughly enjoyable and convincing to anyone with an interest in behavioral finance. Jan 09, Clare rated jammes really liked it Shelves: Montier doesn’t quite make a smooth transition from research notes to book chapters, but despite that this is an encyclopaedic compendium of topics related to behavioural finance in all its guises.
It’s easy to read, and lovely to dip into as the mood strikes. Jun 15, Gourav marked it as to-read. Sep 12, Thomas C rated it really liked bdhavioural. Nice collection of useful empirical finance literature.
Behavioural Investing : James Montier :
Nov 30, Investibg Mitchell rated it it was amazing. Read it as part of my curriculum. Maria Victoria Suncar rated it it was amazing Jul 31, Ettore Valerio rated it really liked it May 03, J V Gerbasi rated it it was amazing Dec 22, Adreno rated it really liked it Oct 12, Jacob rated it really liked it Apr 24, Daniel Oskarsson rated it it was amazing Feb 29, Ben Sutter rated it really liked iinvesting Sep 14,