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  • The Little Book of Behavioral Investing

  • How Not to Be Your Own Worst Enemy
  • By: James Montier
  • Narrated by: Sean Pratt
  • Length: 5 hrs and 2 mins
  • 4.6 out of 5 stars (134 ratings)

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The Little Book of Behavioral Investing

By: James Montier
Narrated by: Sean Pratt
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Summary

Little book, big profits....

Here is 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, one of the world's foremost behavioral analysts, 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. This book:

  • Offers time-tested ways to identify and avoid the pitfalls of investor bias
  • 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.

©2010 James Montier (P)2010 Gildan
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What listeners say about The Little Book of Behavioral Investing

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  • Overall
    4 out of 5 stars
  • Performance
    3 out of 5 stars
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    3 out of 5 stars

Good guide to psychological fallacies.

Good read. There's a ton of fascinating information in here on the numerous psychological quirks and fallacies that humans fall pray to, with an emphasis on those relevant to traders. The main actionable point being that we need to have consistent rules and procedures in place to counter our own psychological frailties.

My main criticism of the book was although there is a great deal of good information here, it's not organized in a way that aids memory or allows you to process it very clearly.

Pratt is his usual competent self as the narrator.

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  • Overall
    5 out of 5 stars

helps to better control emotion

Wanted a book like this for a while, helps keep my feet firmly on the ground and control those ever lurkingl emotions. it gives me the ability to not follow the herd when investing or trading, Very good book to understand how emotions play a part in the stock market

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  • Overall
    4 out of 5 stars
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    4 out of 5 stars
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    4 out of 5 stars

A useful summary/reminder, by not much new

This book provides a useful summary and reminder of common decision making pitfalls, but these are the same as are commonly mentioned in many other books, so there isn't much new here.
Main takeaway is to follow process, as this gives much better results than our default decision making tendencies outside of process.

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  • Overall
    5 out of 5 stars
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    5 out of 5 stars
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    5 out of 5 stars

Good book to introspect investing behaviour

Easy book to listen to with lots of examples and results of experiments done over a period of time. Key is taking time out after reading, doing an honest self-reflection, looking out for behavioural patterns in investing & making appropriate changes.

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  • Overall
    5 out of 5 stars
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    5 out of 5 stars
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    5 out of 5 stars

behave!

just the right length. covers the main bad habits that all investors must work to overcome - habits that probably served cavemen very well, but routinely cause investors to lose money.
Montier is clearly a very good writer, and his style translates well to audiobook format.

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    5 out of 5 stars
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Excellent

Very good analysis of many human investment bias aspects. Excellent and well read by narrator.

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    4 out of 5 stars
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    4 out of 5 stars

Pause for thought before acting on instinct

Evolution's legacy is distorted 'rationality'.

Herd behaviour, and multiple biases do not equip us well for rational investment and disinvestment decisions.

This book is easy reading but it's messages are hard to learn. it's a useful primer in humility.

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    5 out of 5 stars
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excellent

great information raises awareness of our natural subconscious and conscious biases must read for all investors

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    5 out of 5 stars
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    5 out of 5 stars

brilliant insights to self sabotage

We all think we are better than we are and this book explains simply why that is the case and suggests ways of addressing it. if we cannot accurately analyse our decisions then how can we expect to improve our performance. every investor needs to read this book and take notes to do a self check once in a while as it will undoubtedly improve their results and therefore profits

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    5 out of 5 stars
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    5 out of 5 stars

you must listen to this book. essential explainer

you will see things you haven't noticed before. extremely valuable knowledge. even if you deny it!

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