From the New York Times bestselling author of The Laws of Wealth, an enlightening and practical guide to using psychology to inform your investments.
In The Behavioral Investor, psychologist and behavioral finance expert Dr. Daniel Crosby examines the sociological, neurological and psychological factors that influence our investment decisions. He sets forth practical solutions for improving both investment returns and behaviour, and for refining decision-making processes.
Rooted in the belief that we can only learn 'how' to invest after understanding the 'why', The Behavioral Investor is a sweeping tour of the human nature behind the art of portfolio construction. It has three parts:
- Part One – What are the sociological, neurological and physiological factors impeding good investing?
- Part Two – What are the four primary psychological tendencies that drive investment decisions?
- Part Three – An accessible framework for managing your wealth, with a psychology-driven approach.
This new edition features a new foreword and a compelling bonus chapter. Having identified the behavioral realities of investors – our competing emotional needs, wants, and desires that we bring to the market – the new chapter sets out an actionable framework for designing portfolios that embrace human psychology rather than clamp down on it.
True wealth has just as much to do with psychological as financial wellbeing. The Behavioral Investor will enrich you in the most holistic sense of the word, leaving you with essential tools for reaching your financial goals. Your go-to guide explaining the science behind great investing decisions so that you can build a stronger investing portfolio and achieve your financial goals. Dr. Daniel Crosby is a psychologist and behavioral finance expert who helps organizations understand the intersection of mind and markets. Dr. Crosby's first book, Personal Benchmark: Integrating Behavioral Finance and Investment Management, was a New York Times bestseller. His second book, The Laws of Wealth, was named the best investment book of 2017 by the Axiom Business Book Awards and has been translated into 12 languages. His third book, The Behavioral Investor, was Axiom's best investment book of 2019 and is a comprehensive look at the neurology, physiology and psychology of sound financial decision-making. When he's not decoding market psychology, Daniel is a husband and father of 3, a fanatical follower of the St. Louis Cardinals, an explorer of the American South, and an amateur hot sauce chef.
"The Behavioral Investor is Daniel Crosby's brilliant new book which looks at how professional investors can improve and enhance their performance by better understanding the way their brains influence their behaviours and affects their investment practice." -Steven Goldstein, Senior Managing Director, Alpha R Cubed
"...a useful summary of an increasingly important field of investing. Our brains have not evolved fast enough to make us expert in many investment decisions, and being aware of these short-comings may help us, not to knock it out of the park as investors, but to avoid various more obvious mistakes that can often hurt our wealth." -Simon Moore, Chief Investment Officer at Moola and contributor to Forbes
"Crosby's book is eminently readable, with ample stories and studies...the book offers the reader valuable lessons in creating a portfolio that can, at least in part, circumvent the most pervasive behavioral pitfalls." -Brenda Jubin, Reading the Markets blog
"...Crosby is a master of his craft, a great storyteller as well as an academic, who can explain sometimes difficult concepts in simple terms and support his arguments with thought-provoking and entertaining commentary." -Richard Gill, CFA and contributor to Master Investor
"Rather arrogantly, I thought I knew everything there was to know about behavioural finance. After reading 'The Behavioural Inves
