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, can help you overcome this obstacle. In The Little Book of Behavioral Investing, expert James Montier takes you through some of the most important behavioral challenges faced by investors. Montier reveals the most common psychological barriers, clearly showing how emotion, overconfidence, and a multitude of other behavioral traits, can affect investment decision-making. Offers time-tested ways to identify and avoid the pitfalls of investor bias Author James Montier is one of the world's foremost behavioral analysts Discusses how to learn from our investment mistakes instead of repeating them Explores the behavioral principles that will allow you to maintain a successful investment portfolio Written in a straightforward and accessible style, The Little Book of Behavioral Investing will enable you to identify and eliminate behavioral traits that can hinder your investment endeavors and show you how to go about achieving superior returns in the process. Praise for The Little Book Of Behavioral Investing "e;The Little Book of Behavioral Investing is an important book for anyone who is interested in understanding the ways that human nature and financial markets interact."e; Dan Ariely, James B. Duke Professor of Behavioral Economics, Duke University, and author of Predictably Irrational "e;In investing, success means being on the right side of most trades. No book provides a better starting point toward that goal than this one."e; Bruce Greenwald, Robert Heilbrunn Professor of Finance and Asset Management, Columbia Business School "e;'Know thyself.' Overcoming human instinct is key to becoming a better investor. You would be irrational if you did not read this book."e; Edward Bonham-Carter, Chief Executive and Chief Investment Officer, Jupiter Asset Management "e;There is not an investor anywhere who wouldn't profit from reading this book."e; Jeff Hochman, Director of Technical Strategy, Fidelity Investment Services Limited "e;James Montier gives us a very accessible version of why we as investors are so predictably irrational, and a guide to help us channel our 'Inner Spock' to make better investment decisions. Bravo!"e; John Mauldin, President, Millennium Wave Investments

A detailed guide to overcoming the most frequently encounteredpsychological pitfalls of investingBias, emotion, and overconfidence are just three of the manybehavioral traits that can lead investors to lose money or achievelower returns. Behavioral finance, which recognizes that there is apsychological element to all investor decision-making, can help youovercome this obstacle.In The Little Book of Behavioral Investing, expert JamesMontier takes you through some of the most important behavioralchallenges faced by investors. Montier reveals the most commonpsychological barriers, clearly showing how emotionoverconfidence, and a multitude of other behavioral traits, canaffect investment decision-making.* Offers time-tested ways to identify and avoid the pitfalls ofinvestor bias* Author James Montier is one of the world's foremost behavioralanalysts* Discusses how to learn from our investment mistakes instead ofrepeating them* Explores the behavioral principles that will allow you tomaintain a successful investment portfolioWritten in a straightforward and accessible style, The LittleBook of Behavioral Investing will enable you to identify andeliminate behavioral traits that can hinder your investmentendeavors and show you how to go about achieving superior returnsin the process.Praise for The Little Book Of BehavioralInvesting"The Little Book of Behavioral Investing is an importantbook for anyone who is interested in understanding the ways thathuman nature and financial markets interact."Dan Ariely, James B. Duke Professor of BehavioralEconomics, Duke University, and author of PredictablyIrrational"In investing, success means¿being on the right side ofmost trades. No book provides a better starting point toward thatgoal than this one."Bruce Greenwald, Robert Heilbrunn Professor of Financeand Asset Management, Columbia Business School"'Know thyself.' Overcoming human instinct is key to becoming abetter investor.¿ You would be irrational if you did not readthis book."Edward Bonham-Carter, Chief Executive and ChiefInvestment Officer, Jupiter Asset Management"There is not an investor anywhere who wouldn't profit fromreading this book."Jeff Hochman, Director of Technical Strategy, FidelityInvestment Services Limited"James Montier gives us a very accessible version of why we asinvestors are so predictably irrational, and a guide to help uschannel our 'Inner Spock' to make better investment decisions.Bravo!"John Mauldin, President, Millennium WaveInvestments

Foreword xiIntroduction This Is a Book About You 1Chapter One In the Heat of the Moment 15Chapter Two Who's Afraid of the Big Bad Market? 21Chapter Three Always Look on the Bright Side of Life 31Chapter Four Why Does Anyone Listen to These Guys? 41Chapter Five The Folly of Forecasting 57Chapter Six Information Overload 73Chapter Seven Turn off That Bubblevision! 87Chapter Eight See No Evil, Hear No Evil 93Chapter Nine In the Land of the Perma-Bear and the Perma-Bull 103Chapter Ten The Siren Song of Stories 117Chapter Eleven This Time Is Different 129Chapter Twelve Right for the Wrong Reason, or Wrong for the Right Reason 145Chapter Thirteen The Perils of ADHD Investing 153Chapter Fourteen Inside the Mind of a Lemming 167Chapter Fifteen You Gotta Know When to Fold Them 181Chapter Sixteen Process, Process, Process 199Conclusion The Road to Hell Is Paved with Good Intentions 213