Product Description

A concrete guide that links the theory of behavioral finance with applications in financial products
Behavioral finance is a rapidly expanding field, with major implications for the way in which the investment process is conducted. Behavioural Finance links the concepts of behavioral finance to measurable variables and smarter investment decision making. Comprehensive coverage relating theory to practical investment analysis provides a usable, practical guide for real–world situations.

Product Details

• Amazon Sales Rank: #230800 in Books
• Published on: 2002-09-03
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 193 pages

Review
"...The finding is surprising, as the City is notoriously full of arrogant young men betting on financial markets…Mr Montier has unearthed bizarre facts which suggest stock markets are frequently driven by entirely irrational factors..." (The Daily Telegraph 25 November 2002)

"...In a new book, James Montier…outlines practical methods for exploiting the anomalies thrown up by behavioural finance..." (Financial Times, 25 November 2002)

"…a good introduction to this subject…." (Professional Investor, March 2003)

Review
"...The finding is surprising, as the City is notoriously full of arrogant young men betting on financial markets…Mr Montier has unearthed bizarre facts which suggest stock markets are frequently driven by entirely irrational factors..." (The Daily Telegraph 25 November 2002)

"...In a new book, James Montier…outlines practical methods for exploiting the anomalies thrown up by behavioural finance..." (Financial Times, 25 November 2002)

"…a good introduction to this subject…." (Professional Investor, March 2003)

Professional Investor, March 2003
"...a good introduction to this subject.."

Customer Reviews

Important ideas, could be explained better
Anyone serious about working as an investment manager needs to read up on behavioural finance. This is because the largest valuation anomolies that appear within the stock market are often as a result of behavioural patterns that individuals and groups are prone to. This book is okay, but I would consider Investment Madness by John R. Nofsinger or Inefficient Markets by Andrei Shleifer (the latter is the text for the London Business School MBA course on behavioural finance) . You can buy both these books together for less than the cost of this book.

This book will make you money
Conventional financial theory remains dominated by the efficient market theory, a theory which a few days watching markets in action can render incredible. Behavioural finance is a surprisingly effective and recognisable model of the way markets move, the mistakes they make consistently, and the mental kinks that every investor is aware of within themselves, but find so hard to shake. A very useful book, that moves from a good survey of the academic literature to applications - it changed the way I invest fundamentally. Recommended. Might help with poker too.