The Little Book of Behavioral Investing

By James Montier,

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

Book description

A detailed guide to overcoming the most frequently encountered psychological pitfalls of investing

Bias, emotion, and overconfidence are just three of the many behavioral traits that can lead investors to lose money or achieve lower returns. Behavioral finance, which recognizes that there is a psychological element to all investor decision-making,…

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Why read it?

1 author picked The Little Book of Behavioral Investing as one of their favorite books. Why do they recommend it?

Practicing good behavior is the most important ingredient of successful investing.

And understanding the ingrained biases and heuristics that negatively impact our behavior is essential to good investment behavior.

I’ve read dozens of books on behavioral biases, and I think this book is among the best and a perfect introduction to the topic. Written in a light and humorous manner, Montier explains common cognitive biases, how they lead to irrational investment decisions, strategies for overcoming them, and how to practice better investment behavior.

From John's list on novices to learn about investing.

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