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The Little Book of Behavioral Investing: How not to be your own worst enemy (Little Book, Big Profits) Audiobook
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(3.04) - 194 listener ratings
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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. 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 audio 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.
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"This is a book on investing. But look a little harder, it's a book about the fallacies, weaknesses, and overconfidence of humans. It's actually a bit of a horror book to see how wrong and short-sighted we are. "
— Wellington (4 out of 5 stars)
The Little Book of Behavioral Investing Listener Reviews
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" This is a book on investing. But look a little harder, it's a book about the fallacies, weaknesses, and overconfidence of humans. It's actually a bit of a horror book to see how wrong and short-sighted we are. "
— Wellington, 10/10/2013 -
" This is a book on investing. But look a little harder, it's a book about the fallacies, weaknesses, and overconfidence of humans. It's actually a bit of a horror book to see how wrong and short-sighted we are. "
— Wellington, 10/10/2013 -
" Decent book. Since I'm already familiar with much of the content of the book however, I found that there wasn't really anything in here that stood out in my mind as new or innovative. "
— Brandon, 6/28/2013 -
" Decent book. Since I'm already familiar with much of the content of the book however, I found that there wasn't really anything in here that stood out in my mind as new or innovative. "
— Brandon, 6/28/2013 -
" Process is key in investing, no matter what your style. I'm not with the author's value investing camp but still found several useful ideas here, along with added encouragement to "stay the course". "
— Shayne, 10/26/2012 -
" Process is key in investing, no matter what your style. I'm not with the author's value investing camp but still found several useful ideas here, along with added encouragement to "stay the course". "
— Shayne, 10/26/2012 -
" A good application of common behavioral economic principles to investing. Very readable "
— John, 9/4/2012 -
" A good application of common behavioral economic principles to investing. Very readable "
— John, 9/4/2012 -
" This is a pretty good primer on behavioral investing. "
— Kelly, 8/29/2012 -
" This is a pretty good primer on behavioral investing. "
— Kelly, 8/29/2012 -
" Lots of goods stats and studies. "
— Chad, 11/8/2011 -
" Lots of goods stats and studies. "
— Chad, 11/8/2011 -
" excellent excellent excellent easy read on how not to be lured into false sense of safety by al the experts. They havent got a clue have they. "Dont question authority - they dont know the answer either!" "
— Niels, 8/20/2011 -
" excellent excellent excellent easy read on how not to be lured into false sense of safety by al the experts. They havent got a clue have they. "Dont question authority - they dont know the answer either!" "
— Niels, 8/20/2011 -
" <br/>This is a book on investing. But look a little harder, it's a book about the fallacies, weaknesses, and overconfidence of humans. It's actually a bit of a horror book to see how wrong and short-sighted we are.<br/><br/> "
— Wellington, 2/14/2011 -
" Won this on first reads. <br/> <br/>Very enlightening and thought provoking. I am sure this is one I will get more from with each time I re-read it. "
— Melissa, 3/12/2010 -
" Won this on first reads. <br/> <br/>Very enlightening and thought provoking. I am sure this is one I will get more from with each time I re-read it. "
— Melissa, 3/12/2010
About James Montier
James Montier is a member the asset allocation team at GMO, a global investment management firm that provides asset management solutions and services. He has been the top-rated strategist in the annual Thomson Extel survey for most of the last decade and is the author of three market-leading books: Behavioral Finance: Insights into Irrational Minds and Markets, Behavioral Investing: A Practitioners Guide to Applying Behavioral Finance, and Value Investing: Tools and Techniques for Intelligent Investment. He is a visiting fellow at the University of Durham and a fellow of the Royal Society of Arts. Montier holds a BA in economics from Portsmouth University and an MS in economics from Warwick University.
About Lloyd James
Lloyd James (a.k.a. Sean Pratt) has been a working professional actor in theater, film, television, and voice-overs for more than thirty years. He has narrated over one thousand audiobooks and won numerous Earphones Awards and nominations for the Audie Award and the Voice Arts Award. He holds a BFA degree in acting from Santa Fe University, New Mexico.