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Zusatztext "It is quite simply the best and most comprehensive treatment of the subject to date." (Financial Times! Monday 3rd December 2007)"The Year's most exhaustive! and often entertaining! coverage of the behavioural literature." (Financial Times! Saturday 15th December 2007) Klappentext 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.Behavioural Investing: A Practitioner's Guide to Applying Behavioural Finance 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:* The only book to cover the applications of behavioural finance.* An executive summary for every chapter with key points highlighted at the chapter start.* Information on the key behavioural biases of professional investors, including The seven sins of fund management, Investment myth busting, and The Tao of investing.* Practical examples showing how using a psychologically inspired model can improve on standard, common practice valuation tools.Written by an internationally renowned expert in the field of behavioural finance. Zusammenfassung 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. Inhaltsverzeichnis Preface xvii Acknowledgments xxi Section I: Common Mistakes and Basic Biases 1 1 Emotion, Neuroscience and Investing: Investors as Dopamine Addicts 3 Spock or McCoy? 5 The Primary of Emotion 5 Emotions: Body or Brain? 6 Emotion: Good, Bad of Both? 7 Self-Control is Like a Muscle 11 Hard-Wired for the Short Term 13 Hard-Wired to Herd 14 Plasticity as Salvation 15 2 Part Man, Part Monkey 17 The Biases We Face 19 Bias #1: I Know Better, Because I Know More 19 The Illusion of Knowledge: More Information Isn't Better Information 20 Professionals Worse than Chance! 21 The Illusion of Control 22 Bias #2: Big ¿ Important 23 Bias #3: Show Me What I Want to See 23 Bias #4: Heads was Skill, Tails was Bad Luck 24 Bias #5: I Knew it all Along 25 Bias #6: The Irrelevant has Value as Input 25 Bias #7: I Can Make a Judgement Based on What it Looks Like 27 Bias #8: That's Not the Way I Remember it 28 Bias #9: If you Tell Me it Is So, It Must be True 29 Bias #10: A Loss Isn't a Loss Until I Take It 30 Conclusions 35 3 Take a Walk on the Wild Side 37 Impact Bias 39 Empathy Gaps 40 Combating the Biases 44 4 Brain Damage, Addicts and Pigeons 47 5 What Do Secretaries' Dustbins and the Da Vinci Code have in Common? 55 6 The Limits to Learning 63 Self-Attribution Bias: Heads is Skill, Tails is Bad Luck 67 Hindsight Bias: I Knew it All Along 69 Skinner's Pigeons 71 Illusion of Control 72 Feedback Distortion 73 Conclusions 76 Section II: The Professionals and the Biases 77 7 Behaving Badly 79
