The Securities and Exchange Commission has launched an investor education site, investor.gov that includes a comprehensive summary of what we’ve learned over the last 30 years about how we investors behave and the mistakes we make. This Library of Congress report published last August, Behavioral Patterns and Pitfalls of U.S. Investors, manages in sixteen pages to highlight some of the most important insights of the work of leaders in this academic field like Terrance Odean, Richard Thaler, Daniel Kahneman, Meir Statman, and many others.
The Role of Behavioral Finance
Nestled into a site that is largely a primer for new investors, the study is an interesting acknowledgement by the top securities regulator that there’s value to be found in better understanding our own true investing selves. Continue reading →
Dave Ramsey is a well-known author and media personality famous for his focus on saving and getting your financial house in order. His books have hit The New York Times’ bestseller list and 137,000 people follow his radio show’s Twitter feed.
Praise seems to be universal when it comes to his advice on how to pay down debt and save. But his ideas about investing are far less popular with some, who argue they are irresponsibly optimistic. Why does he set hopes so high? Continue reading →
Behavioral Finance expert Meir Statman has cast his skeptical eye on the world of individual investors and finds we invest just like we shop for a car or sunglasses — some of us are bargain conscious, some are looking for a chance to show off. We can’t have it all, though we think we should be able to, and in this interview with Portfolioist, Statman outlines how that sense of entitlement plays into everything from seeking out the guidance of an advisor to Elizabeth Warren and the push for investor protection. Here are edited excerpts from our interview with the Santa Clara University professor and author of a new book What Investors Really Want:
Portfolioist: What Investors Really Want is your first book for the everyman investor, though your reputation as a leader in the field of behavioral finance is well known in academia and on Wall Street. Why did you decide to write for the general audience now?Continue reading →
I came across this webcast from Merrill Lynch this morning. This panel discussion includes Meir Statman, a professor at Santa Clara University, and author of What Investors Really Want about how we behave as investors and the real-world implications of behavioral finance, and Bill Gross, a founder of PIMCO, the Newport Beach-California-based investing giant, and perhaps the leading expert on government and corporate debt investing. While there is nothing terribly surprising here if you are familiar with these guys, it’s a useful discussion and both Statman and Gross are articulate presenters. Continue reading →
Behavioral Finance expert Meir Statman teaches finance at Santa Clara University, and he seems to have packed several courses worth of work into his new book, What Investors Really Want. With a droll sense of humor and a skill for drawing parallels between financial behavior and how we act in the rest of our lives, Statman manages to make his brand of finance a surprisingly fun read. Continue reading →