|Digital List Price:||CDN$ 84.00|
|Print List Price:||CDN$ 84.00|
|Kindle Price:|| CDN$ 48.23 |
Save CDN$ 35.77 (43%)
Follow the Author
Behavioral Finance and Investor Types: Managing Behavior to Make Better Investment Decisions (Wiley Finance) 1st Edition, Kindle Edition
This groundbreaking book shows how to invest wisely by managing your behavior, and not just your money. Step by step, Michael Pompian (a leading authority in the practical application of Behavioral Finance concepts to wealth management) helps you plan a strategy targeted to your personality. The book includes a test for determining your investment type and offers strategies you can put into use when investing. It also includes a brief history of the stock market, and easy-to-comprehend information about stocks and investing to help you lay a solid foundation for your investment decisions.
Behavioral Finance and Investor Types is divided into two parts. Test Your Type, gives an overview of Behavioral Finance as well as the elements that come into play when figuring out BIT, like active or passive traits, risk tolerance, and biases. The book includes a quiz to help you discover what category you are in. Plan and Act, contains the traits common to your type; an analysis of the biases associated with your type; and strategies and solutions that compliment and capitalize on your BIT.
- Offers a practical guide to an investing strategy that fits both your financial situation and your personality type
- Includes a test for determining your tolerance for risk and other traits that will determine your investment type
- Written by the Director of the Private Wealth Practice for Hammond Associates—an investment consulting firm serving institutional and private wealth clients
Behavioral Finance and Investor Types offers investors a better sense of what drives them and what puts on their breaks. By using the information found here, you'll quickly become savvy about the world of investing because you'll come to understand your place in it.
About the Author
MICHAEL M. POMPIAN, CFA, CAIA, CFP, is a partner at Mercer Investment Consulting (formerly Hammond Associates) serving institutional and private wealth clients. Prior to joining Mercer, he worked at Merrill Lynch and PNC Private Bank, as well as the investment staff of a family office. Pompian holds the Chartered Financial Analyst (CFA) designation, is a Chartered Alternative Investment Analyst (CAIA) and a Certified Financial Planner (CFP). He is also a member of the CFA Institute (formerly AIMR) and the New York Society of Security Analysts (NYSSA). He holds a BS in management from the University of New Hampshire and an MBA from Tulane University. He is a regular speaker on the subject of behavioral finance and has published numerous articles on the subject. He is married with three sons and can be reached at firstname.lastname@example.org.--This text refers to the hardcover edition.
From the Back Cover
Praise for Behavioral Finance and Investor Types
"Michael has done yeoman's service in taking years of academic research and his own practitioner insights to illuminate the mandatory need to understand the virtues of the physiological implications of choice. He is bringing these essential findings to the forefront of untangling everyday investment thinking with the clear mandate of implementing sound investment decisions. His combined knowledge of the inherent drivers of investor behavior, and years of careful observation, clearly illuminates that shoe sizes, so to speak, vary a great deal."
Arnie Wood, CEO, Martingale Asset Management
"Pompian brings something new to the field of behavioral finance books. By combining insights into our fundamental cognitive and emotional biases with insights into fundamental personality types, he provides concrete, practical action steps to avoid making big mistakes. In classic Pompian style, he does it with efficient, easy-to-read prose. You do not want to make important financial decisions without reading this book."
Stephen Horan, Head, University Relations and Private Wealth, CFA Institute
"For centuries, great thinkers like Hippocrates and Plato have sought to explain the distinct personality types that drove human behavior. Behavioral Finance and Investor Types extends their constructs and identifies unique Behavioral Investment Types that help explain why investors have such difficulty in achieving their long-term goals. This book provides an outstanding road map for understanding our individual behavioral biases, embracing our unique investor personality, and allocating our portfolios to capitalize on our individual strengths. Behavioral Finance and Investor Types is required reading for any investor who wants to enhance the probability of achieving long-term investment success."
Mark Yusko, CEO and CIO, Morgan Creek Capital Management
"Personality is linked to investors' cognitive errors, including overconfidence, and emotions, including regret. Michael Pompian contributes greatly to our understanding of investors' behavior as he exposes these important links."
Meir Statman, Glenn Klimek Professor of Finance, Santa Clara University
"Michael Pompian takes investors on a fascinating tour from behavioral finance through personality theory to what he calls Behavioral Investor Types. He manages to simplify the complex world of behavioral investing so that investors and their advisors can get their arms around this large subject. Best of all, Pompian provides clear guidance for how to avoid the behavioral traps that stand between investors and their financial goals."
Gregory Curtis, Chairman, Greycourt & Co., Inc.
"Chock-full of practical applications, this book is an invaluable introduction to behavioral finance, a field of study that will make you a much better investor and advisor. It will certainly be required reading in our practice."
Harold Evensky, President, Evensky & Katz
- ASIN : B008674Q2C
- Publisher : Wiley; 1st edition (May 22 2012)
- Language : English
- File size : 2394 KB
- Text-to-Speech : Enabled
- Screen Reader : Supported
- Enhanced typesetting : Enabled
- X-Ray : Not Enabled
- Word Wise : Enabled
- Print length : 259 pages
- Customer Reviews:
About the author
Top review from Canada
There was a problem filtering reviews right now. Please try again later.
Throughout, there are quizzes to help identify particular behavioral tendencies. It can work for either an investment advisor of for the reader on their own financial behavioral analysis.
Beyond just telling the reader about themselves, Pompian also provides advice on how to circumvent these tendencies, or how to address them. This is particularly important in an advice book of this nature.
I would have provided five stars, if the quizzes were centralized in one appendix, or repeated there in one cohesive quiz. It is currently scattered throughout the book, and each quiz question provides a brief analysis below. Reader's may want to test their own behavioral tendencies, and having the descriptions directly below each the quiz question made it difficult to avoid reading the "answer" and making your selection based on the type of behavior you want to convey.
Otherwise, great book on Investment Psychology! Hope to improve my returns as a result :-)
Top reviews from other countries
I think this is the book that pulls together 20/30 other books that I have read from the perspective of an investment adviser (or someone with an avid interest in the psychology of investment)into a easy to follow/comprehend set of sensible guidelines to follow when advising clients. if this does not lead you to read further about personality differences/heuristics and emotional biases and investor psychology you should not be advising clients professionally.
I have no idea if it will appeal to the layperson investor (because I have been dealing with investments professionally for over 20 years). However I did not find it hard or dry to read and in fact felt quite comfortable skimming large chunks of it without losing the essence, so for any individual with an interest in investing it should be a worthwhile (if expensive) and thought provoking read.
However I must reiterate for investment advisers or any financial planner worth his/her salt this is a must for your office shelf.
The genuine value in this work is that Pompian provides a framework for how to treat biases in the asset allocation decision. Pompian's work truly aligns the higher purpose of the financial advice business. For the practitioner, the application of this work is really about improving the quality of the advice. The framework provides guidelines for how to answer these two central questions. First, when should and advisor attempt to moderate the way a client naturally behaves in order to counteract the effects of behavioral biases so that they can fit a predetermined asset allocation. ie. The recommended portfolio. Second, and alternatively to the first, when should advisors create asset allocations that adapt to clients' biases so that clients can comfortably abide by their asset allocation decision.
This is practical, usable and valuable. A must for anyone who professes to be a financial advisor.
Clark Brown - Cannon Financial Insitute