James Montier is an expert in behavioral finance who argues that investors would have a greater chance of spotting the formation of bubbles if they could only brush up on their history and have a greater awareness of human psychology. His work focuses on connecting historical events with psychological profiles to illuminate the mechanisms of market bubbles. Through this approach, he offers readers a deeper understanding of financial markets. His unique perspective blends historical context with psychological insight to explain complex financial phenomena.
In The Little Book of Behavioral Investing, expert James Montier 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.
The seductive elegance of classical finance theory is powerful, yet value investing requires that we reject both the precepts of modern portfolio theory (MPT) and pretty much all of its tools and techniques. This book explains how value investing is the only tried and tested method of delivering sustainable long-term returns.