{"product_id":"behavioural-investing-isbn-9780470516706","title":"Behavioural Investing","description":"Behavioural investing seeks to bridge the gap between psychology and investing. All too many investors are unaware of the mental pitfalls that await them. Even once we are aware of our biases, we must recognise that knowledge does not equal behaviour. The solution lies is designing and adopting an investment process that is at least partially robust to behavioural decision-making errors.  \u003cp\u003e\u003ci\u003eBehavioural Investing: A Practitioner’s Guide to Applying Behavioural Finance\u003c\/i\u003e explores the biases we face, the way in which they show up in the investment process, and urges readers to adopt an empirically based sceptical approach to investing. This book is unique in combining insights from the field of applied psychology with a through understanding of the investment problem. The content is practitioner focused throughout and will be essential reading for any investment professional looking to improve their investing behaviour to maximise returns. Key features include: \u003c\/p\u003e \u003cul type=\"disc\"\u003e \u003cli\u003eThe only book to cover the applications of behavioural finance\u003c\/li\u003e \u003cli\u003eAn executive summary for every chapter with key points highlighted at the chapter start\u003c\/li\u003e \u003cli\u003eInformation on the key behavioural biases of professional investors, including \u003ci\u003eThe seven sins of fund management, Investment myth busting,\u003c\/i\u003e and \u003ci\u003eThe Tao of investing\u003c\/i\u003e\n\u003c\/li\u003e \u003cli\u003ePractical examples showing how using a psychologically inspired model can improve on standard, common practice valuation tools\u003c\/li\u003e \u003cli\u003eWritten by an internationally renowned expert in the field of behavioural finance\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003ePreface xvii\u003c\/p\u003e \u003cp\u003eAcknowledgments xxi\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSection I: Common Mistakes and Basic Biases 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Emotion, Neuroscience and Investing: Investors as Dopamine Addicts 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSpock or McCoy? 5\u003c\/p\u003e \u003cp\u003eThe Primary of Emotion 5\u003c\/p\u003e \u003cp\u003eEmotions: Body or Brain? 6\u003c\/p\u003e \u003cp\u003eEmotion: Good, Bad of Both? 7\u003c\/p\u003e \u003cp\u003eSelf-Control is Like a Muscle 11\u003c\/p\u003e \u003cp\u003eHard-Wired for the Short Term 13\u003c\/p\u003e \u003cp\u003eHard-Wired to Herd 14\u003c\/p\u003e \u003cp\u003ePlasticity as Salvation 15\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Part Man, Part Monkey 17\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Biases We Face 19\u003c\/p\u003e \u003cp\u003eBias #1: I Know Better, Because I Know More 19\u003c\/p\u003e \u003cp\u003eThe Illusion of Knowledge: More Information Isn’t Better Information 20\u003c\/p\u003e \u003cp\u003eProfessionals Worse than Chance! 21\u003c\/p\u003e \u003cp\u003eThe Illusion of Control 22\u003c\/p\u003e \u003cp\u003eBias #2: Big ≠ Important 23\u003c\/p\u003e \u003cp\u003eBias #3: Show Me What I Want to See 23\u003c\/p\u003e \u003cp\u003eBias #4: Heads was Skill, Tails was Bad Luck 24\u003c\/p\u003e \u003cp\u003eBias #5: I Knew it all Along 25\u003c\/p\u003e \u003cp\u003eBias #6: The Irrelevant has Value as Input 25\u003c\/p\u003e \u003cp\u003eBias #7: I Can Make a Judgement Based on What it Looks Like 27\u003c\/p\u003e \u003cp\u003eBias #8: That’s Not the Way I Remember it 28\u003c\/p\u003e \u003cp\u003eBias #9: If you Tell Me it Is So, It Must be True 29\u003c\/p\u003e \u003cp\u003eBias #10: A Loss Isn’t a Loss Until I Take It 30\u003c\/p\u003e \u003cp\u003eConclusions 35\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Take a Walk on the Wild Side 37\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eImpact Bias 39\u003c\/p\u003e \u003cp\u003eEmpathy Gaps 40\u003c\/p\u003e \u003cp\u003eCombating the Biases 44\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Brain Damage, Addicts and Pigeons 47\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 What Do Secretaries’ Dustbins and the Da Vinci Code have in Common? 55\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 The Limits to Learning 63\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSelf-Attribution Bias: Heads is Skill, Tails is Bad Luck 67\u003c\/p\u003e \u003cp\u003eHindsight Bias: I Knew it All Along 69\u003c\/p\u003e \u003cp\u003eSkinner’s Pigeons 71\u003c\/p\u003e \u003cp\u003eIllusion of Control 72\u003c\/p\u003e \u003cp\u003eFeedback Distortion 73\u003c\/p\u003e \u003cp\u003eConclusions 76\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSection II: The Professionals and the Biases 77\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Behaving Badly 79\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Test 81\u003c\/p\u003e \u003cp\u003eThe Results 82\u003c\/p\u003e \u003cp\u003eOveroptimism 82\u003c\/p\u003e \u003cp\u003eConfirmatory Bias 83\u003c\/p\u003e \u003cp\u003eRepresentativeness 84\u003c\/p\u003e \u003cp\u003eThe Cognitive Reflection Task (CRT) 85\u003c\/p\u003e \u003cp\u003eAnchoring 87\u003c\/p\u003e \u003cp\u003eFraming 87\u003c\/p\u003e \u003cp\u003eLoss Aversion 89\u003c\/p\u003e \u003cp\u003eKeynes’s beauty contest 90\u003c\/p\u003e \u003cp\u003eMonty Hall Problem 92\u003c\/p\u003e \u003cp\u003eConclusions 94\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSection III: The Seven Sins of Fund Management 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 A Behavioural Critique 97\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSin city 99\u003c\/p\u003e \u003cp\u003eSin 1: Forecasting (Pride) 99\u003c\/p\u003e \u003cp\u003eSin 2: The Illusion of Knowledge (Gluttony) 100\u003c\/p\u003e \u003cp\u003eSin 3: Meeting Companies (Lust) 100\u003c\/p\u003e \u003cp\u003eSin 4: Thinking You Can Outsmart Everyone Else (Envy) 100\u003c\/p\u003e \u003cp\u003eSin 5: Short Time Horizons and Overtrading (Avarice) 101\u003c\/p\u003e \u003cp\u003eSin 6: Believing Everything You Read (Sloth) 101\u003c\/p\u003e \u003cp\u003eSin 7: Group-Based Decisions (Wrath) 101\u003c\/p\u003e \u003cp\u003eAlternative Approaches and Future Directions 102\u003c\/p\u003e \u003cp\u003eSin 1: Forecasting (Pride) 103\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 The Folly of Forecasting: Ignore all Economists, Strategists, \u0026amp; Analysts 105\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOverconfidence as a Driver of Poor Forecasting 109\u003c\/p\u003e \u003cp\u003eOverconfidence and Experts 110\u003c\/p\u003e \u003cp\u003eWhy Forecast When the Evidence Shows You Can’t? 114\u003c\/p\u003e \u003cp\u003eUnskilled and Unaware 115\u003c\/p\u003e \u003cp\u003eEgo Defence Mechanism 115\u003c\/p\u003e \u003cp\u003eWhy Use Forecasts? 119\u003c\/p\u003e \u003cp\u003eDebasing 120\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 What Value Analysts? 123\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSin 2: Illusion of Knowledge (Gluttony) 131\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 The Illusion of Knowledge or Is More Information Better Information? 133\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSin 3: Meeting Companies (Lust) 141\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Why Waste Your Time Listening to Company Management? 143\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eManagers are Just as Biased as the Rest of Us 145\u003c\/p\u003e \u003cp\u003eConfirmatory Bias and Biased Assimilation 148\u003c\/p\u003e \u003cp\u003eObedience to Authority 151\u003c\/p\u003e \u003cp\u003eTruth or Lie? 153\u003c\/p\u003e \u003cp\u003eConclusions 157\u003c\/p\u003e \u003cp\u003eSin 4: Thinking You Can Outsmart Everyone Else (Envy) 159\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Who’s a Pretty Boy Then? Or Beauty Contests, Rationality and Greater Fools 161\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBackground 163\u003c\/p\u003e \u003cp\u003eThe Game 163\u003c\/p\u003e \u003cp\u003eThe Solution 164\u003c\/p\u003e \u003cp\u003eThe Results 165\u003c\/p\u003e \u003cp\u003eA Simple Model of Our Contest 168\u003c\/p\u003e \u003cp\u003eComparison with Other Experiments 170\u003c\/p\u003e \u003cp\u003eLearning 173\u003c\/p\u003e \u003cp\u003eConclusions 174\u003c\/p\u003e \u003cp\u003eSin 5: Short Time Horizons and Overtrading (Avarice) 177\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 ADHD, Time Horizons and Underperformance 179\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSin 6: Believing Everything You Read (Sloth) 187\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 The Story is The Thing (or The Allure of Growth) 189\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Scepticism is Rare or (Descartes vs Spinoza) 197\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCartesian Systems 199\u003c\/p\u003e \u003cp\u003eSpinozan Systems 199\u003c\/p\u003e \u003cp\u003eLibraries 200\u003c\/p\u003e \u003cp\u003eA Testing Structure 200\u003c\/p\u003e \u003cp\u003eThe Empirical Evidence 200\u003c\/p\u003e \u003cp\u003eStrategies to Counteract Naïve Belief 203\u003c\/p\u003e \u003cp\u003eSin 7: Group Decisions (Wrath) 207\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 Are Two Heads Better Than One? 209\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBeating the Biases 215\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSection IV: Investment Process as Behavioural Defence 217\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e18 The Tao of Investing 219\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart A: the Behavioral Investor 223\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e19 Come Out of the Closet (or, Show Me the Alpha) 225\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Alpha 228\u003c\/p\u003e \u003cp\u003eThe Evolution of the Mutual Fund Industry 229\u003c\/p\u003e \u003cp\u003eCharacteristics of the Funds 231\u003c\/p\u003e \u003cp\u003eThe Average and Aggregate Active Share 231\u003c\/p\u003e \u003cp\u003ePersistence and Performance 231\u003c\/p\u003e \u003cp\u003eConclusions 233\u003c\/p\u003e \u003cp\u003e\u003cb\u003e20 Strange Brew 235\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Long Run 237\u003c\/p\u003e \u003cp\u003eDeath of Indexing 238\u003c\/p\u003e \u003cp\u003eGetting the Long Run Right 238\u003c\/p\u003e \u003cp\u003eThe Short Run 239\u003c\/p\u003e \u003cp\u003eTactical Asset Allocation 239\u003c\/p\u003e \u003cp\u003eEquity Managers 240\u003c\/p\u003e \u003cp\u003eBreak the Long-Only Constraint 242\u003c\/p\u003e \u003cp\u003eAdd Breadth 244\u003c\/p\u003e \u003cp\u003eNot Just an Excuse for Hedge Funds 245\u003c\/p\u003e \u003cp\u003eTruly Alternative Investments 245\u003c\/p\u003e \u003cp\u003eConclusions 246\u003c\/p\u003e \u003cp\u003e21 Contrarian or Conformist? 247\u003c\/p\u003e \u003cp\u003e22 Painting by Numbers: An Ode to Quant 259\u003c\/p\u003e \u003cp\u003eNeurosis or Psychosis? 261\u003c\/p\u003e \u003cp\u003eBrain Damage Detection 262\u003c\/p\u003e \u003cp\u003eUniversity Admissions 263\u003c\/p\u003e \u003cp\u003eCriminal Recidivism 263\u003c\/p\u003e \u003cp\u003eBordeaux Wine 263\u003c\/p\u003e \u003cp\u003ePurchasing Managers 264\u003c\/p\u003e \u003cp\u003eMeta-Analysis 264\u003c\/p\u003e \u003cp\u003eThe Good News 267\u003c\/p\u003e \u003cp\u003eSo Why Not Quant? 268\u003c\/p\u003e \u003cp\u003e\u003cb\u003e23 The Perfect Value Investor 271\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTrait I: High Concentration In Portfolios 273\u003c\/p\u003e \u003cp\u003eTrait II: They Don’t Need to Know Everything, and Don’t Get Caught in the Noise 276\u003c\/p\u003e \u003cp\u003eTrait III: A Willingness to Hold Cash 276\u003c\/p\u003e \u003cp\u003eTrait IV: Long Time Horizons 277\u003c\/p\u003e \u003cp\u003eTrait V: An Acceptance of Bad Years 278\u003c\/p\u003e \u003cp\u003eTrait VI: Prepared to Close Funds 278\u003c\/p\u003e \u003cp\u003e\u003cb\u003e24 A Blast from the Past 279\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Unheeded Words of Keynes and Graham 281\u003c\/p\u003e \u003cp\u003eOn the Separation of Speculation and Investment 281\u003c\/p\u003e \u003cp\u003eOn the Nature of Excess Volatility 282\u003c\/p\u003e \u003cp\u003eOn the Folly of Forecasting 283\u003c\/p\u003e \u003cp\u003eOn the Role of Governance and Agency Problems 284\u003c\/p\u003e \u003cp\u003eOn the Importance (and Pain) of Being a Contrarian 285\u003c\/p\u003e \u003cp\u003eOn the Flaws of Professional Investors 286\u003c\/p\u003e \u003cp\u003eOn the Limits to Arbitrage 286\u003c\/p\u003e \u003cp\u003eOn the Importance of the Long Time Horizon 287\u003c\/p\u003e \u003cp\u003eOn the Difficulty of Defining Value 288\u003c\/p\u003e \u003cp\u003eOn the Need to Understand Price Relative to Value 288\u003c\/p\u003e \u003cp\u003eOn Why Behavioural Errors don’t Cancel Out 289\u003c\/p\u003e \u003cp\u003eOn Diversification 289\u003c\/p\u003e \u003cp\u003eOn the Current Juncture 289\u003c\/p\u003e \u003cp\u003eOn the Margin of Safety 290\u003c\/p\u003e \u003cp\u003eOn Beta 291\u003c\/p\u003e \u003cp\u003eOn the Dangers of Overcomplicating 291\u003c\/p\u003e \u003cp\u003eOn the Use of History 291\u003c\/p\u003e \u003cp\u003e\u003cb\u003e25 Why Not Value? The Behavioural Stumbling Blocks 293\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eKnowledge ≠ Behaviour 295\u003c\/p\u003e \u003cp\u003eLoss Aversion 296\u003c\/p\u003e \u003cp\u003eDelayed Gratification and Hard-Wiring for the Short Term 297\u003c\/p\u003e \u003cp\u003eSocial Pain and the Herding Habit 300\u003c\/p\u003e \u003cp\u003ePoor Stories 301\u003c\/p\u003e \u003cp\u003eOverconfidence 301\u003c\/p\u003e \u003cp\u003eFun 303\u003c\/p\u003e \u003cp\u003eNo, Honestly I Will Be Good 303\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart B: the Empirical Evidence: Value in All Its Forms 305\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e26 Bargain Hunter (or It Offers Me Protection) 307\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eWritten with Rui Antunes\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eThe Methodology 308\u003c\/p\u003e \u003cp\u003eDoes Value Work? 309\u003c\/p\u003e \u003cp\u003eThe Anatomy of Value 310\u003c\/p\u003e \u003cp\u003eThe Siren of Growth 311\u003c\/p\u003e \u003cp\u003eGrowth Doesn’t Mean Ignoring Valuation 311\u003c\/p\u003e \u003cp\u003eThe Disappointing Reality of Growth 313\u003c\/p\u003e \u003cp\u003eAnalyst Accuracy? 314\u003c\/p\u003e \u003cp\u003eValue versus Growth 316\u003c\/p\u003e \u003cp\u003eKey points 317\u003c\/p\u003e \u003cp\u003eRegional Tables 318\u003c\/p\u003e \u003cp\u003eGlobal 318\u003c\/p\u003e \u003cp\u003eUSA 320\u003c\/p\u003e \u003cp\u003eEurope 323\u003c\/p\u003e \u003cp\u003eJapan 325\u003c\/p\u003e \u003cp\u003e\u003cb\u003e27 Better Value (or The Dean Was Right!) 329\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eWritten with Rui Antunes\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e28 The Little Note that Beats the Market 337\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eWritten with Sebastian Lancetti\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eThe Methodology and the Data 339\u003c\/p\u003e \u003cp\u003eThe Results 340\u003c\/p\u003e \u003cp\u003eThe Little Book Works 340\u003c\/p\u003e \u003cp\u003eValue Works 341\u003c\/p\u003e \u003cp\u003eEBIT\/EV Better than Simple PE 341\u003c\/p\u003e \u003cp\u003eQuality Matters for Value 341\u003c\/p\u003e \u003cp\u003eCareer Defence as an Investment Strategy 342\u003c\/p\u003e \u003cp\u003eWhat About the Long\/Short View? 343\u003c\/p\u003e \u003cp\u003eThe Future for the Little Book 344\u003c\/p\u003e \u003cp\u003eTables and Figures 345\u003c\/p\u003e \u003cp\u003eRegional Results 345\u003c\/p\u003e \u003cp\u003e\u003cb\u003e29 Improving Returns Using Inside Information 355\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePatience is a Virtue 357\u003c\/p\u003e \u003cp\u003eUsing Inside Information 357\u003c\/p\u003e \u003cp\u003eA Hedge Perspective 359\u003c\/p\u003e \u003cp\u003eRisk or Mispricing? 359\u003c\/p\u003e \u003cp\u003eEvidence for Behavioural Errors 360\u003c\/p\u003e \u003cp\u003eEvidence Against the Risk View 361\u003c\/p\u003e \u003cp\u003eEuropean Evidence 363\u003c\/p\u003e \u003cp\u003eConclusions 365\u003c\/p\u003e \u003cp\u003e\u003cb\u003e30 Just a Little Patience: Part I 367\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e31 Just a Little Patience: Part II 375\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eWritten with Sebastian Lancetti \u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eValue Perspective 377\u003c\/p\u003e \u003cp\u003eGrowth Perspective 380\u003c\/p\u003e \u003cp\u003eGrowth and Momentum 381\u003c\/p\u003e \u003cp\u003eValue for Growth Investors 382\u003c\/p\u003e \u003cp\u003eValue and Momentum 383\u003c\/p\u003e \u003cp\u003eImplications 383\u003c\/p\u003e \u003cp\u003e\u003cb\u003e32 Sectors, Value and Momentum 387\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eValue 389\u003c\/p\u003e \u003cp\u003eMomentum 389\u003c\/p\u003e \u003cp\u003eSectors: Value or Growth 390\u003c\/p\u003e \u003cp\u003eStocks or Sectors 391\u003c\/p\u003e \u003cp\u003e\u003cb\u003e33 Sector-Relative Factors Works Best 395\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eWritten with Andrew Lapthorne\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eMethodology 398\u003c\/p\u003e \u003cp\u003eThe Results 398\u003c\/p\u003e \u003cp\u003eConclusion 403\u003c\/p\u003e \u003cp\u003e\u003cb\u003e34 Cheap Countries Outperform 405\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStrategy by Strategy Information 409\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart C: Risk, but Not as We Know It 423\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e35 CAPM is CRAP (or, The Dead Parrot Lives!) 425\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Brief History of Time 427\u003c\/p\u003e \u003cp\u003eCAPM in Practice 427\u003c\/p\u003e \u003cp\u003eWhy Does CAPM Fail? 431\u003c\/p\u003e \u003cp\u003eCAPM Today and Implications 432\u003c\/p\u003e \u003cp\u003e\u003cb\u003e36 Risk Managers or Risk Maniacs? 437\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e37 Risk: Finance’s Favourite Four-Letter Word 445\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Psychology of Risk 447\u003c\/p\u003e \u003cp\u003eRisk in Performance Measurement 447\u003c\/p\u003e \u003cp\u003eRisk from an Investment Perspective 448\u003c\/p\u003e \u003cp\u003eSection V: Bubbles and Behaviour 453\u003c\/p\u003e \u003cp\u003e\u003cb\u003e38 The Anatomy of a Bubble 455\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDisplacement 457\u003c\/p\u003e \u003cp\u003eCredit Creation 457\u003c\/p\u003e \u003cp\u003eEuphoria 459\u003c\/p\u003e \u003cp\u003eCritical Stage\/Financial Distress 459\u003c\/p\u003e \u003cp\u003eRevulsion 463\u003c\/p\u003e \u003cp\u003e\u003cb\u003e39 De-bubbling: Alpha Generation 469\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBubbles in the Laboratory 471\u003c\/p\u003e \u003cp\u003eBubbles in the Field 472\u003c\/p\u003e \u003cp\u003eDisplacement: The Birth of a Boom 473\u003c\/p\u003e \u003cp\u003eCredit Creation: Nurturing the Boom 473\u003c\/p\u003e \u003cp\u003eEuphoria 476\u003c\/p\u003e \u003cp\u003eCritical Stage\/Financial Distress 477\u003c\/p\u003e \u003cp\u003eRevulsion 483\u003c\/p\u003e \u003cp\u003eApplications 487\u003c\/p\u003e \u003cp\u003eAsset Allocation 487\u003c\/p\u003e \u003cp\u003eAlpha Generation 488\u003c\/p\u003e \u003cp\u003eBalance Sheets 489\u003c\/p\u003e \u003cp\u003eEarnings Quality 489\u003c\/p\u003e \u003cp\u003eCapital Expenditure 490\u003c\/p\u003e \u003cp\u003eLong-Only Funds 491\u003c\/p\u003e \u003cp\u003eSummary 491\u003c\/p\u003e \u003cp\u003e\u003cb\u003e40 Running with the Devil: A Cynical Bubble 493\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Main Types of Bubble 496\u003c\/p\u003e \u003cp\u003eRational\/Near Rational Bubbles 496\u003c\/p\u003e \u003cp\u003eIntrinsic Bubbles 498\u003c\/p\u003e \u003cp\u003eFads 499\u003c\/p\u003e \u003cp\u003eInformational Bubbles 499\u003c\/p\u003e \u003cp\u003ePsychology of Bubbles 500\u003c\/p\u003e \u003cp\u003eComposite Bubbles and the De-Bubbling Process 500\u003c\/p\u003e \u003cp\u003eExperimental Evidence: Bubble Echoes 503\u003c\/p\u003e \u003cp\u003eMarket Dynamics and the Investment Dangers of Near Rational Bubbles 503\u003c\/p\u003e \u003cp\u003eConclusions 505\u003c\/p\u003e \u003cp\u003e\u003cb\u003e41 Bubble Echoes: The Empirical Evidence 507\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eConclusions 516\u003c\/p\u003e \u003cp\u003eSection VI: Investment Myth Busters 519\u003c\/p\u003e \u003cp\u003e\u003cb\u003e42 Belief Bias and the Zen Investing 521\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBelief Bias and the X-System 524\u003c\/p\u003e \u003cp\u003eConfidence Isn’t a Proxy for Accuracy 528\u003c\/p\u003e \u003cp\u003eBelief Bias and the Zen of Investing 528\u003c\/p\u003e \u003cp\u003e\u003cb\u003e43 Dividends Do Matter 529\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eConclusions 540\u003c\/p\u003e \u003cp\u003e\u003cb\u003e44 Dividends, Repurchases, Earnings and the Coming Slowdown 541\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e45 Return of the Robber Barons 549\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e46 The Purgatory of Low Returns 563\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e47 How Important is the Cycle? 573\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e48 Have We Really Learnt So Little? 581\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e49 Some Random Musings on Alternative Assets 587\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHedge Funds 589\u003c\/p\u003e \u003cp\u003eCommodities 590\u003c\/p\u003e \u003cp\u003eWhich Index? 590\u003c\/p\u003e \u003cp\u003eComposition of Commodity Futures Returns 591\u003c\/p\u003e \u003cp\u003eThe Times They are A-Changin’ 591\u003c\/p\u003e \u003cp\u003eConclusions 595\u003c\/p\u003e \u003cp\u003eSection VII: Corporate Governance and Ethics 597\u003c\/p\u003e \u003cp\u003e\u003cb\u003e50 Abu Ghraib: Lesson from Behavioural Finance and for Corporate Governance 599\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFundamental Attribution Error 601\u003c\/p\u003e \u003cp\u003eZimbardo’s Prison Experiment 602\u003c\/p\u003e \u003cp\u003eMilgram: The Man that Shocked the World 604\u003c\/p\u003e \u003cp\u003eConditions that Turn Good People Bad 608\u003c\/p\u003e \u003cp\u003eConclusions 609\u003c\/p\u003e \u003cp\u003e\u003cb\u003e51 Doing the Right Thing or the Psychology of Ethics 611\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Ethical Blindspot 613\u003c\/p\u003e \u003cp\u003eThe Origins of Moral Judgements 614\u003c\/p\u003e \u003cp\u003eExamples of Bounded Ethicality and Unconscious Biases 617\u003c\/p\u003e \u003cp\u003eImplicit Attitudes (Unconscious Prejudices) 617\u003c\/p\u003e \u003cp\u003eIn-Group Bias (Bias that Favours Your Own Group) 619\u003c\/p\u003e \u003cp\u003eOverclaiming Credit (Bias that Favours You) 620\u003c\/p\u003e \u003cp\u003eConflicts of Interest (Bias that Favours Those Who Can Pay You) 621\u003c\/p\u003e \u003cp\u003eMechanisms Driving Poor Ethical Behaviour 627\u003c\/p\u003e \u003cp\u003eLanguage Euphemisms 628\u003c\/p\u003e \u003cp\u003eSlippery Slope 628\u003c\/p\u003e \u003cp\u003eErrors in Perceptual Causation 628\u003c\/p\u003e \u003cp\u003eConstraints Induced by Representations of the Self 629\u003c\/p\u003e \u003cp\u003eCombating Unethical Behaviour 629\u003c\/p\u003e \u003cp\u003e\u003cb\u003e52 Unintended Consequences and Choking under Pressure: The Psychology of Incentives 631\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEvidence from the Laboratory 635\u003c\/p\u003e \u003cp\u003eEvidence from the Field 638\u003c\/p\u003e \u003cp\u003eChild Care Centres 638\u003c\/p\u003e \u003cp\u003eBlood Donations 638\u003c\/p\u003e \u003cp\u003eFootball Penalty Kicks 639\u003c\/p\u003e \u003cp\u003eBasketball Players 640\u003c\/p\u003e \u003cp\u003eBack to the Laboratory 640\u003c\/p\u003e \u003cp\u003eWho is Likely to Crack Under Pressure? 641\u003c\/p\u003e \u003cp\u003eConclusions 643\u003c\/p\u003e \u003cp\u003eSection VIII: Happiness 645\u003c\/p\u003e \u003cp\u003e\u003cb\u003e53 If It Makes You Happy 647\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTop 10 653\u003c\/p\u003e \u003cp\u003e\u003cb\u003e54 Materialism and the Pursuit of Happiness 655\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAspiration Index 657\u003c\/p\u003e \u003cp\u003eMaterialism and Happiness: The Evidence 658\u003c\/p\u003e \u003cp\u003eProblems of Materialism 660\u003c\/p\u003e \u003cp\u003eWhat to Do? 660\u003c\/p\u003e \u003cp\u003eWhy Experiences Over Possessions? 663\u003c\/p\u003e \u003cp\u003eConclusions 665\u003c\/p\u003e \u003cp\u003eReferences 667\u003c\/p\u003e \u003cp\u003eIndex 677\u003c\/p\u003e  \"It is quite simply the best and most comprehensive treatment of the subject to date.\"  (\u003ci\u003eFinancial Times\u003c\/i\u003e, Monday 3rd December 2007)  \u003cp\u003e\"The Year's most exhaustive, and often entertaining, coverage of the behavioural literature.\"  (\u003ci\u003eFinancial Times\u003c\/i\u003e, Saturday 15th December 2007)\u003c\/p\u003e \u003cp\u003e\"...one of the few 'must read' books on the topic of investing.\"  (\u003ci\u003eThe Herald - Glasgow\u003c\/i\u003e, Saturday 2nd February 2008)\u003c\/p\u003e \u003cp\u003e\"…a fantastic insight into how markets operate… [and] one of the few \"must read\" on the topic of investing.\" (\u003ci\u003eThe Herald\u003c\/i\u003e, Sat 2nd February 2008)\u003c\/p\u003e \u003cb\u003eJAMES MONTIER\u003c\/b\u003e is the global equity strategist at Dresdner Kleinwort in London. He has been the top rated strategist in the annual Extel survey for the last two years. He is also the author of \u003ci\u003eBehavioural Finance\u003c\/i\u003e, published by Wiley in 2000. James was on the 50 must read analysts list complied by the \u003ci\u003eBusiness\u003c\/i\u003e magazine, and was one of the Financial News' Rising Stars.\u003cbr\u003eJames is a regular speaker at both academic and practitioner conferences, and is regarded as the leading authority on applying behavioural finance to investment. He is also a visiting fellow at the University of Durham. James is also a fellow of the Royal Society of Arts. He has been described as a maverick by the Sunday Times, an enfant terrible by the FAZ, and a prophet by the Fast Company! When not writing or reading, he can usually be found blowing bubbles at fish and swimming with sharks.  Behavioural investing seeks to bridge the gap between psychology and investing. All too many investors are unaware of the mental pitfalls that await them. Even once we are aware of our biases, we must recognise that knowledge does not equal behaviour. The solution lies is designing and adopting an investment process that is at least partially robust to behavioural decision-making errors.  \u003cp\u003e\u003ci\u003eBehavioural Investing: A Practitioner’s Guide to Applying Behavioural Finance\u003c\/i\u003e explores the biases we face, the way in which they show up in the investment process, and urges readers to adopt an empirically based sceptical approach to investing. This book is unique in combining insights from the field of applied psychology with a through understanding of the investment problem. The content is practitioner focused throughout and will be essential reading for any investment professional looking to improve their investing behaviour to maximise returns.\u003c\/p\u003e \u003cp\u003eKey features include:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eThe only book to cover the applications of behavioural finance.\u003c\/li\u003e \u003cli\u003eAn executive summary for every chapter with key points highlighted at the chapter start.\u003c\/li\u003e \u003cli\u003eInformation on the key behavioural biases of professional investors, including \u003ci\u003eThe seven sins of fund management, Investment myth busting,\u003c\/i\u003e and \u003ci\u003eThe Tao of investing.\u003c\/i\u003e\n\u003c\/li\u003e \u003cli\u003ePractical examples showing how using a psychologically inspired model can improve on standard, common practice valuation tools.\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWritten by an internationally renowned expert in the field of behavioural finance.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988801110245,"sku":"NP9780470516706","price":131.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470516706.jpg?v=1761781642","url":"https:\/\/k12savings.com\/es\/products\/behavioural-investing-isbn-9780470516706","provider":"K12savings","version":"1.0","type":"link"}