Behavioral Investing – James Montier Book Summary
There is a test that is more powerful than any IQ test, that measures you resilience against making simple investing mistakes. Technically the test is called the CRT (or Cognitive Reflection Task) & it measure the likelihood of tripping over common behavioral biases.
I was inspired to make this video after rereading The Little book of Behavioral Investing by James Montier.
There are a lot of books out there on Behavioral thinking, you’ve probably heard of Thinking Fast and Thinking Slow by Daniel Kahneman.
But I like this one because
(1) its meant to be a primer on the subject (so it’s short & to the point) and
(2) it focuses specifically the most common behavioral and mental pitfalls that investors face and strategies on how to eliminate them.
-Why a legendary Hedge Fund Manager would sell his entire portfolio at random to avoid 1 specific behavioral bias.- See Chapter 9
-Details how George Soros used an investment diary, which he called “a roaring success” – See Chapter 12.
-It’s also got a ton more quizzes you can test yourself with.
Anyway, it’s a great read.
If you end up purchasing the book (or anything else on amazon) please use my Amazon Affiliate link below. It doesn’t cost you a penny more, and Amazon gives me a little kickback, which helps me to make more awesome videos for you guys.
Buy The Little Book of Behavioral Investing: How Not to be Your Own Worst Enemy by James Montier-http://amzn.to/2jpwdQz
Not Without the Rest by Twin Musicom is licensed under a Creative Commons Attribution license (https://creativecommons.org/ilcenses/by/4.0/) Artist: http://www.twinmusicom.org/