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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We just try to buy businesses with good-to -superb underlying economics run by honest and able people and buy them at sensible prices. The results may challenge some of your most deeply held beliefs.

The Little Book of Behavioral Investing: How Not to Be Your Own Worst Enemy

It is particularly important to have a clear definition investting what it will take for you to be fully invested. Practical examples showing how using a psychologically inspired model can improve on standard, common practice valuation tools. 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.

Until then, wait in cash. Oct 05, Jon rated it liked it. We would be far better off analyzing the five things we really need to know about an investment, rather than trying to know absolutely everything about everything concerned with the investment.

The Little Book of Behavioral Investing: James Montier’s book is in fact a collection of articles and therefore has some redundancies by repeating the same things again and again. Here are a few snippets which probably does injustice to them in the absence of the supporting evidence from the book, anyway: This is a great introduction to behavioral finance.


Bias, emotion, and overconfidence are just three of the many behavioral traits that can lead investors to lose money or achieve lower returns. Avoid a burden of information that only provides confidence but not knowledge.

The Little Book of Behavioral Investing: How Not to Be Your Own Worst Enemy by James Montier

I guess that was his ultimate goal. It is fairly expensive, and the reviews are mixed on Amazon, so was unsure whether to go ahead and buy it. Visit our Help Pages. In practice there is! 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. Be the first to review this item Amazon Bestsellers Rank: If anyone has read both this book and Behaviorap Your Money and Your Brain”please weigh in on whether you think it would be useful for someone who has already read the latter to pick up the former.

Simply put, the endowment effect says that once you own something you start to place a higher value on it than others would. Es un libro bien escrito, de lectura amena y entretenida. Here is a monograph by James Montier: This collection of notes tries to explore some of the areas in which understanding psychology could iames alter the way they structure their businesses.

You are currently using the site but have requested a page in the site. Hard to change what we adquired with efforts. There are certain things that cannot be adequately explained to a virgin either by words or pictures.

Be independent thinker BUT!

Behavioral Investing – James Montier –

Montier is the onvesting of three market-leading books, Behavioral Finance: Some of these adaptations have actually been tested, whereas others are hypotheses. Information on the key behavioural biases of professional investors, including The seven sins of fund management, Investment myth busting, and Kames Tao of investing.


Researchers have found that people are willing to invest more when they see invvesting performance of their holdings infrequently. A fun read on how our behavior, whether nature or nurture, can work against us when it comes to decision making.

Hurts not following herds. He shows how to at least try to avoid common biases and focusing on the facts on the past. 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.

A shorter version of his much longer book which I should read sometime On the other hand, nearly all people who manage their own investments make a myriad of repeated mistakes based on patterned and harmful behavior.

When not reading, writing, or speaking, Montier can usually be found swimming with sharks and blowing bubbles at fishes. It is also an example of the endowment effect. Review “It is behzvioral simply the behvaioral and most comprehensive treatment of the subject to date. To an engineer, it’s twice the size it needs to be.

Refresh and try again. The evidence suggests that in general more information just makes us increasingly over-confident rather than better at making decisions.