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. The Little Book of Behavioral Investing has ratings and 83 reviews. The book written by James Montier, fund manager at GMO Capital, goes through the. Each book offers a unique perspective on investing, allowing the reader to pick and ยท choose from the The Little Book of Behavioral Investing by James Montier .

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James Montier’s book is in fact a collection of articles and therefore has some redundancies by repeating the same things again and again. Return to Book Page.

Praise for The Little Book Of Behavioral Investing ” The Little Book of Behavioral Investing is an important book for anyone who is interested in understanding the ways that human nature and financial markets interact. Perhaps I’m biased given that I’ve read other books with deep explanation and actionable ideas.

Unfortunately groups are far more a behavioural panacea. However, this seems to be remarkably hubristic. It has many great points about how behavioral bias can lead to bad investment return. Effectively, everyone thinks they can get in at the bottom and out at the top. The solution lies is designing and adopting an investment process that is at least partially robust to behavioural decision-making errors.

Art cannot convey to an inexperienced girl what it is truly like to be a wife and mother. Having read other books of the “little book” series about investing I’m a bit disappointed about this one. Written by an internationally renowned expert in the field of behavioural finance. The average holding period for a stock on the NYSE is 11 months! What other items do customers buy after viewing this item?


This review has been hidden because it contains spoilers. For instance, in a world in which short -term performance is everything, fund managers may end up buying stocks they find easy to justify to their clients, In general, holding people accountable for outcomes tends to increase the following: Keep notes of your decisions 3. I did like the second part of the book, it seemed to have “more juice” to me. How we need to be skeptical, avoid useless predictions, and focus in penetrating analysis.

This collection of notes tries to explore some of the areas in which understanding psychology could radically alter the way they structure their businesses. Would you like to change to the site?

Key thoughts to remember: Then you can start reading Kindle books on your smartphone, tablet, or computer – no Kindle device required.

Even if we like to think we are.

Sep 10, Alvin behavilral it really liked it Shelves: In practice, there is! Dec 14, Abhijit rated it really liked it. Where in the cycle we are? The evidence suggests that in general more information just makes us increasingly over-confident rather than better at making decisions. A brilliant author who backs up his statements with cold hard research.

It is also an example of the endowment effect. Together they suggest that when every decision is measured on outcomes, investors are likely to avoid uncertainty, chase noise, and herd with the consensus.

The Little Book of Behavioral Investing: How not to be your own worst enemy

This is true both in terms investijg the psychological research underpinning the precepts of behavioural investing, and of the empirical research that shows the practical impact on asset prices. Hard to change what we adquired with efforts. I only took one star off because the Kindle version is loaded with grammatical and typographical errors. James Montier is an expert in behavioral finance, argues that investors would have a greater chance of spotting the formation of bubbles if they could only brush up on their history and have a greater awareness of human psychology.


If we invest our monies the same way we invest our love it ends the same way, in tears, screams, and loss, and that’s just the neighbors Want to Read Currently Reading Read. The first half of the book is a compilation of well know phycological experiments investinf oversimplified and what the author calls “giving you an example of how to overcome the behaviotal is not actionable unless you actually go and read further on what he mentions.

Behavioral Investing – James Montier –

Jun 07, Mike rated it liked it. Perhaps I’m biased given that I’ve read other books with de Having read other books of the “little book” series about investing I’m a bit disappointed about this one. An executive summary for every chapter with key points highlighted at the chapter start. It goes right to the point without to much fluff which is nice but I suspect it tries to cover too much territory in too short a space. He shows how to at least try to avoid common biases and focusing on the facts on the past.

All too many investors are unaware of the mental pitfalls that await them.