James Montier’s emphasis is on how to keep behavioral biases from disrupting long-term value investing, not on how to exploit shorter-term emergent market behaviors that may derive from individual human biases. I'd say that this book is interesting and important, but it's degree of appeal is correlated with your interest in finances, simple math and behavioral sciences. Till now, we haven’t known of any such book. But I think I’ve found one…. The interesting part is that we are predictably irrational. Steve LeCompte | In The Little Book of Behavioral Investing, expert James Montier takes you through some of the most important behavioral challenges faced by investors. Montier reveals the most common psychological barriers, clearly showing how emotion, overconfidence, and a multitude of other behavioral traits, can affect investment decision-making. Avoid a burden of information that only provides confidence but not knowledge. Gain access to hundreds of premium investing research articles and CXO's trading strategies, Stock Option Momentum and SeasonalityDecember 9, 2020, Are Currency Carry Trade ETFs Working?December 8, 2020, Stock Market Valuation Ratio TrendsDecember 7, 2020, Weekly Summary of Research Findings: 11/30/20 – 12/4/20December 4, 2020, Rough Net Worth Growth BenchmarksDecember 4, 2020, Persistently High Stock Loan Fee as Return PredictorDecember 3, 2020, Do ETFs Following Gurus/Insiders Work?December 1, 2020, Objective research to aid investing decisions. I only took one star off because the Kindle version is loaded with grammatical and typographical errors. The book is titledThe Little Book of Behavioral Investing: How not to be your own worst enemy (Little Book, Big Profits) and was released on February 2, 2010. These Books Explain Why You Feel That Way. And, that is what this book is about. Good summary of Montier's Behavioral investing book. In The Little Book of Behavioral Investing, expert James Montier takes you through some of the most important behavioral challenges faced by investors. This book is elaboration of point discussed by famous investor Charlie Munger in his lecture titled ‘ Psychology of Human Misjudgment ‘. The Little Book of Behavioral Investing will take you on a guided tour of the most common behavioral challenges and mental pitfalls that investors encounter and provide you with strategies to … When not reading, writing, or speaking, Montier can usually be found swimming with sharks and blowing bubbles at fishes. Interesting read, but personally, I already knew some of the information here. When not reading, writing, or speaking, Montier can usually be. Start by marking “The Little Book of Behavioral Investing: How Not to Be Your Own Worst Enemy” as Want to Read: Error rating book. James Montier’s examples of “how some of the world’s best investors have striven to develop investment processes that minimize their behavioral errors” are incomplete in a research sense, arguably more story-like than research-like. It reveals our "bad thinking" commonly used by even the best investment fund managers. “Success in investing doesn’t correlate with IQ once you’re above the level of 100. Behavioral investing studies these patterns. explains a lot of mistakes in investing, Summarizing our mental tricks in an investment contest, with a funny and clear style. Loss Aversion, Overoptimism, Overconfidence, Hindsight Bias, Disposition Effect, Anchoring, Confirmation Bias, etc). One of the interesting examples is that even if a person does well in evaluating. On average, we are much more exceptional than we think. Montier reveals the most common psychological barriers, clearly showing how emotion, overconfidence, and a multitude of other behavioral traits, can affect investment decision-making. Be the first to ask a question about The Little Book of Behavioral Investing. Book name: The little book of behavioral investing Author: J. Montier ISBN: 978-0-470-68602-7 Pages: 219 Publisher: John Wiley & Sons, Inc. Year of publishing: 2010 Book … Avoid nice stories. Even if we like to think we are. This book is one of the best guide for long-term investing in the Equity Market. "It is … The book was shorter, narrower and less in-depth than Trading in the Zone....possibly reversing my order of reading would have made this book more valuable to me. Montier reveals the most common psychological barriers, clearly showing how emotion, overconfidence, and a multitude of other behavioral traits, can affect investment decision-making. The efficient market hyposis is based on rational decisions. However, that turned out to be a wasted hope. How the key for investing successfully is quite simple: prepare, plan and pre-commit to a strategy. Must read! The Little Book of Behavioral Investing by James Montier Buy the Book: Print | eBook James Montier writes about the many ways investors are their own worst enemies. A detailed guide to overcoming the most frequently encountered psychological pitfalls of investing Bias, emotion, and overconfidence are just three of the many behavioral traits that can lead investors to lose money or achieve lower returns. To get a better understanding of this subject, I decided to read another “Little Book”. I enjoyed reading it (kind of Dan Arieli applied to finance). It provides a good introduction to the topic and was well researched, quoting numerous studies, and some unpublished work. If there is a take-away it might be to make fact based decisions and to slow down (if possible) in that decision making. In his 2010 book entitled The Little Book of Behavioral Investing: How Not to Be Your Own Worst Enemy, author James Montier states: “I…highlight some of the most destructive behavioral biases and common mental mistakes that I’ve seen professional investors make. I only read this because I legitimately had nothing else to read and this was given to me at QWIL in second year from Burgundy. For a complete and more thorough run-through, I recommend the fabulous Thinking, Fast and Slow by Daniel Kahneman and books by Dan Ariely (Predictably Irrational etc. It takes a bit of brainwashing.....repetitive reading of the same topic is a good thing here. 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. And, that is what this book is about. The facts are back up by study. This is a great introduction to behavioral finance. In summary, The Little Book of Behavioral Investing is a broad survey of behavioral biases and countermeasures as related to financial markets, especially for value investors. Bogle’s invention, the index fund, is still one of the safest and stress-free ways of investing today and in this little book he outlines why, and how you can get started with one. In The Little Book of Behavioral Investing, expert James Montier takes you through some of the most important behavioral challenges faced by investors. In The Little Book of Behavioural Investing, expert James Montier takes you through some of the most important behavioural challenges faced by investors… James Montier's book is a very good introduction to behavioural economics. February 2nd 2010 We’d love your help. Behavioral finance, which recognizes that there is a psychological element to all investor decision-making, can help you overcome this obstacle. 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