Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing
Product DescriptionEven best Wall Street investors make mistakes. No matter how knowledgeable and experienced, all financial practitioners eventually let bias, proud, and emotions cloud their appreciation and mislead their actions. But most economic decision models do not factor in these fundamental in human nature. In Beyond Greed and Fear, the most authoritative of what really affects the decision-making, Hersh Shefrin uses the latest psychological research to help us understand human behavior that govern the selection of shares, financial services, and the company’s financial strategy. Shefrin argues that financial practitioners must recognize and understand behavioral finance – the application of psychology to financial behavior – in order to avoid many of the investment pitfalls caused by human error. Through colorful, often humorous real-world examples, Shefrin points out the common but costly mistakes that money managers, security analysts, the economy. . . Read more>>
Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing
Tuesday, 15. June 2010 4:57
another book by a scholar who feels the need to leave for any reason other than to clearly communicate knowledge and understanding. Rating: 1 / 5
Tuesday, 15. June 2010 7:22
As long as market investors humans rather than machines, market participants will be guided by emotions. The efficient market theory, as Warren Buffett states, works for the most part. But when unusual or extraordinary news comes into the picture, a layer (and / or markets) are almost always over-react. The best book I’ve found the investment is “The Intelligent Investor”. There is a clear picture of what works and what does not work in investing, and why. There are a lot of analysis of the behavior of market participants. Warren Buffett maintains that he did not have much use for what is taught in a typical college business class. As he points out, the professors understand stock markets and so good, why are so few of them rich? People like Ben Graham, Buffett and Peter Lynch are not “lucky”. They read a lot, they have keen insight into what makes a stock go up and they are unafraid to buy when prices are low, the prospects look good. I would prefer to emulate those who are truly successful than those who postulate about what can work. Rating: 3 / 5
Tuesday, 15. June 2010 7:54
If you like to study psychology, human behavior, or behavior are part of the financial markets I think you will appreciate this book Rating: 4 / 5
Tuesday, 15. June 2010 9:41
Hersh Shefrin doing an excellent job of providing a quick overview of the various behavioral phenomena in the first chapters of this book. After that the story becomes less focused and the reader is advised to read these topics that really interest him / her than trying to read the book cover to cover. Rating: 5 / 5
Tuesday, 15. June 2010 11:50
As a technical analyst, Options trader, and former portfolio manager, I am currently studying behavioral phenomena. . . hoping to get a better grip on the current madness in marknaderna.Boken begins with very interesting topics, but loses its luster about halfway through. There are many times when I felt the author did not have a good understanding of finance. . . Perhaps he understands the theory, but he has no practical erfarenhet.Till example, he claims the implied volatility smile, which sometimes prices 100% implied vol for sets, is an expression of investors’ cognitive weaknesses. This is not only factually wrong, it is foolish and it would make the author a “sucker” in any options trading pit. There are periods when the implied vol can not be sufficiently high (eg the current period) and if you dare use the Mandelbrot strategy, you may end up questioning whether it can be an upper limit on the fictitious vol. The author uses only three years history in the 1990s to argue that historical vol is always around 20-30%. Each trainee who gave me such a simplified analysis would have applied to BackOffice omedelbart.Vad would criticize the author here: hindsight bias. Is he not brave myself, in terms of his own “interpretations” of investors fallacy? I dare him to price put options in the current situation, where the likelihood of recovery or life-threatening depression is about even. What is your vol 2yr on the S & P 300 goes on strike, dear author? Conclusion: I’m not sure I would recommend the entire book to anyone. Maybe I should make copies of the first chapters and distribute them to the second year undergrads. Rating: 2 / 5