Author: James Montier
Publisher: Wiley; 1 edition (January 26, 2010)
Average Rating: 4.5 star
This book acts as a complete guide to overcoming the most common and frequent drawbacks of investing. The many behavioral traits that pave the way for investors to lose money or achieve lower returns include bias, emotion, and overconfidence. The writer suggests many ways in which one can conquer these obstacles and mentions the understanding of ‘behavioral finance’ as a tool to overpower them. The fact that the decision-making skills of the investors encompass many psychological elements has also been widely discussed.
The author, James Montier, is one of the world’s foremost behavioral analysts and therefore, this book acts as a key for comprehending the mechanisms in which human nature and financial markets interact. It also offers time-tested ways to identify and nullify the effect of investor bias and techniques through which an investor can learn from his/her mistakes instead of repeating them. The behavioral principles discussed in this book allow the investors to maintain a successful portfolio. Since this book is written in a straightforward manner, it enables one to identify the traits that might hinder one’s investment endeavors and explains how one can attain superior returns in the process.