Saturday, June 04, 2011

Book Review: What Investors Really Want

What Investors Really Want is Meir Statman's look at the world of personal investment from a behavioural finance perspective. The book is well written and waffle free making it easy to digest. Topics covered include:


- the desire for a free lunch of investments with profits higher than risks
- some of the more common cognitive errors
- the often adverse impact of emotions on investment decisions
- mental accounting
- how we react to profits and losses
- the desire for high status and respect
- the desire for fairness
- the role of financial advisers

While most of the subjects covered were ones that I was already familiar with, the book was still a worthwhile read. Had I been less familiar with behavioural finance, it would have made for a great introduction to the subject.

Recommended.

1 comment:

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