Jump to content

Behavioral Investing


JEast
 Share

Recommended Posts

I finished reading two very fine books by James Montier of Grantham, Mayo, Van Otterloo & Co. (GMO).  The first is the 'Little Book of Behavioral Investing' and the more lengthy and in depth version is 'Behavioral Investing: A Practitioners Guide to Applying Behavioural Finance'.  The 'Little Book' series has become a great library of value investing principles and this recent addition is a great contribution to the collection.

 

Both books cover the many mental traps we face such as Empathy Gaps, Fear/Risk Aversion, Overoptimism, Authority Respect/Overconfidence, Anchoring, Information Overload, Reason Respecting, Conformational Bias.

 

http://www.amazon.com/Little-Book-Behavioral-Investing-Profits/dp/0470686022/ref=cm_cr-mr-title

http://www.amazon.com/Behavioural-Investing-Practitioners-Applying-Finance/dp/0470516704/ref=cm_cr-mr-title

 

 

Cheers

JEast

 

Link to comment
Share on other sites

I agree.  These are probably the best value investing books I have read this year.  The nice thing I like about the little book is it actually gives you examples of how value investors overcome these behavioral biases.

 

Packer

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...