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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The facts are back up by study. Nor can any description Behwvioral might offer here even approximate what it feels like to lose a real chunk of money that you used to own. I would add to the criticisms that this book seems comparatively expensive, but I would say that in this case, you get what you pay for.

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

See our Returns Policy. 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. I enjoyed this book. The only book to cover the applications of behavioural finance. In practice there is!

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

Customers who viewed this item also viewed. For instance, in a world in which short -term performance investinh 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: Montier has a gift for explication.

We must learn to think critically and become more skeptical. However, stories can be very misleading. It is easy to read and very entertaining, nevertheless with a factual approach.


Behavioural investing seeks to bridge the gap between psychology and investing. I only took one star off because the Kindle version is loaded with grammatical and typographical errors. The Little Book of Behavioral Investing: Is this stock seriously undervalued?

The only way to test a hypothesis is to look for information that disagrees with it – a process known as falsification [Karl Popper]. Feb 27, Hatem rated it really liked it. Oct 27, Chris rated it it was amazing. Avoid a burden of information that only provides confidence but not knowledge.

You are currently using the site but have requested a page in the site. I’d like to mmontier that the cognitive quirks are being uncovered by Behavioral Economists in controlled experiments, and other disciplines adapt BE findings to their specific environments.

Learn from his example and try to remove the drivers of forced decisions from your portfolios. It’s one of the few books I keep on my study desk to consult when I get twitchy.

He has been a top-rated strategist in the annual Thomson Reuters Extel survey for the last five years. At other times, the format leads to redundancies, as the same point will be reiterated in different client notes.

Es un libro bien escrito, de lectura amena y entretenida. Nov 29, Jason Green rated it really liked it. Montier reveals the most commonpsychological barriers, clearly showing how emotion, overconfidence, and a multitude of other behavioral traits, canaffect investment decision-making. If there is a take-away it might be to make fact based decisions and to slow down if possible in that decision making. And let me say, yep, done them all. Good read, although l wouldn’t pay again what I did for this book, but that’s a sunk cost I guess ; Amazon Prime Music Stream millions of songs, ad-free.

Even if we like to think we are.

Behavioral Investing – James Montier –

So using forecasts as an integral part of the investment process is like tying one hand behind brhavioral back before you start. Permissions Request permission to reuse content from this site. When not reading, writing, or speaking, Montier can usually be found swimming with sharks and blowing bubbles at fishes.

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Be the first to review this item Amazon Bestsellers Rank: Just a moment while we sign you in to your Goodreads account. To see what your friends thought of this book, please sign up. How not to be your own worst enemy.

The average holding period for a stock on the NYSE is 11 months! Sep 19, Alex Gleason rated it liked it. If we invest our behxvioral the same way we invest our love it ends the same way, in tears, montidr, and loss, and that’s just the neighbors Written in a straightforward and montoer style, The Little Book of Behavioral Investing will enable you to identify and eliminate behavioral traits that can hinder your investment montie and show you how to go about achieving superior invrsting in the process.

Hard to change what we adquired with efforts. This could be regarded as a short summary of behavioral economics. Investors would be better served by looking at the facts, rather than getting sucked into a great but often hollow tale. Sixth Edition, Foreword by Warren Buffett. Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions.

The evidence above suggests that fear causes people to ignore bargains when they are available in the market, especially if they have previously suffered Good summary of Montier’s Behavioral investing book. I believe that in order to outperform in today markets you need to combine technicals, fundamentals, an understanding of crowd pyschology and alos control your individual bias’s.