J. V. Bruni and Company
1528 North Tejon Street
Colorado Springs, Colorado 80907
(719) 575-9880 or (800) 748-3409
J. V. Bruni and Company1528 North Tejon Street Colorado Springs, Colorado 80907 (719) 575-9880 or (800) 748-3409
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Why Smart People Make Big Money Mistakes,
by Gary Belsky and Thomas Gilovich.  Economics is rational,
but people aren't always so. For example, have you known someone who
held on to a losing stock simply because he didn't want to admit a
mistake? Or someone who noticeably warms to the thought of investing
after the stock market has experienced a long rise, only to get cold
feet after each market decline? Or someone who, like 90% of all people,
considers himself to be an above average driver? Drawing on work by
Israeli psychologists Amos Tversky and David Kahneman, this 1999 book
contains many examples and very informative discussions of common
psychological traps that snare both consumers and investors. The
general topic of this book--what's commonly known as "behavioral
finance"--has become a hot topic for a number of academic researchers
today. Indeed, since many otherwise quite intelligent investors become
their own worst enemies, it is time to focus on the psychological
aspects of finance. All in all, this is a worthwhile book. |
"What a superb book-- wonderfully readable and informative. It is an indispensable guide to all the mistakes we make as investors--the better to resolve Pogo's dilemma: 'We have met the enemy and he is us.'" Charles Ellis |