The author explains the X-system and the C-system (guts vs brains). ), This could be regarded as a short summary of behavioral economics. It reveals our "bad thinking" commonly used by even the best investment fund managers. I enjoyed reading it (kind of Dan Arieli applied to finance). Behavioral finance, which recognizes that there is a psychological element to all investor decision-making, can help you overcome this obstacle. To get a better understanding of this subject, I decided to read another âLittle Bookâ. How the key for investing successfully is quite simple: prepare, plan and pre-commit to a strategy. James Montier's book is a very good introduction to behavioural economics. Investor psychology is important and often overlooked. Another good entry in the "Little book" series on investing. 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. Here are 3 lessons about the power of index funds: Actively managed funds suck, because past profits donât guarantee future success. explains a lot of mistakes in investing, Summarizing our mental tricks in an investment contest, with a funny and clear style. Any good book on behavioral investing is valuable. Steve LeCompte | In The Little Book of Behavioural Investing, expert James Montier takes you through some of the most important behavioural challenges faced by investors⦠April 16, 2010 | The interesting part is that we are predictably irrational. The tougher aspects of investing are controlling your emotions ( greed, fear) and overcoming your biases. 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 ⦠Review of "The Little Book of Behavioral Investing: ... Summary. Book Review: The Little Book of Behavioral Investing June 14, 2011 James Montierâs addition to the âLittle Bookâ series on investing could have been on practically any topic; however, his focus on investor psychology and his grasp on human irrationality in investing made him the clear candidate for the behavioral portion of the collection. Till now, we havenât known of any such book. When not reading, writing, or speaking, Montier can usually be found swimming with sharks and blowing bubbles at fishes. I got my first exposure to behavioral finance by reading several of David Dremanâs books on investing. Very good book in helping you understand your biases and overcoming them through process. In The Little Book of Behavioral Investing, expert James Montier, one of the world's foremost behavioral analysts, takes you through some of the most important behavioral challenges faced by investors. '”, “…stop listening to the so-called experts.”, “All investors should devote themselves to understanding the nature of the business and its intrinsic worth…once you reject forecasting for the waste of time that it is, you will free up your time to concentrate on the things that really matter.”, “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 [it].”, “Turning off the bubblevision is a great step towards preventing yourself from becoming a slave to the market.”, “…we need to learn to look for evidence that would prove our analysis wrong. Avoid a burden of information that only provides confidence but not knowledge. Just think of impulse buying at your... Two â Whoâs Afraid of the Big Bad Market? On top, he is a great thinker and has experience to boot. In The Little Book of Behavioral Investing, expert James Montier takes you through some of the most important behavioral challenges faced by investors. &; Dan Ariely, James B. Duke Professor of Behavioral Economics, Duke University, and author of Predictably Irrational Though this book is couched in the world of individual investment, it is primarily a catalog of the cognitive biases to which we fall prey in many arenas: politics, personal habits, evaluating truth in a time of over- and dis-information. It is well explained. We believe the simplicity and accessibility of our stock picking framework is truly unique. How we need to be skeptical, avoid useless predictions, and focus in penetrating analysis. Before reading the book, I was under the assumption that, the book will have a great perspective on behavioral investing. 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