Behavioral Finance and Wealth Management: How to Build Investment Strategies That Account for Investor Biases

by Michael M. Pompian

The book that applies behavioral finance to the real world Understanding how to use behavioral finance theory in investing is a hot topic these days. Nobel laureate Daniel Kahneman has described financial advising as a prescriptive activity whose main objective should be to guide investors to make decisions that serve their best interests. The reality? That's easier said than done. In the Second Edition of Behavioral Finance and Wealth Management , Michael Pompian takes a practical approach to the growing science of behavioral finance, and puts it to use for real investors. He applies knowledge of 20 of the most prominent individual investor biases into "behaviorally-modified" asset allocation decisions. Offering investors and financial advisors a "self-help" book, Pompian shows how to create investment strategies that leverage the latest cutting edge research into behavioral biases of individual investors. This This Second Edition illustrates investors' behavioral biases in detail and offers financial advisors and their clients practical advice about how to apply the science of behavioral finance to improve overall investment decision making.

Genres: Finance, Psychology, Economics, Business, Personal Finance

352 pages, Hardcover

First published January 1, 2006

About the author

Michael Pompian, CFA, CAIA, CFP, is the founder and chief investment officer of Sunpointe Investments, an investment advisory firm to entrepreneurs, corporate executives and multi-generational families, based in St. Louis, Missouri. He is the author of five books on behavioral finance, including his latest Behavioral Finance and Your Portfolio (Wiley, 2021).

As an experienced advisor, author, and pioneering researcher on the topics of behavioral finance and emotional investing, Michael has lectured on the practical application of behavioral finance world-wide. Recognized as a global authority, he has authored the CFA Exam Level III course curriculum in Behavioral Finance, has been published in journals such as The Journal of Wealth Management and Journal of Financial Planning, and wrote a monthly column on investing for Morningstar for 12 years. His work currently features in the curricula at Harvard, Duke and Dartmouth.

His books have helped thousands of financial advisors across the globe build better relationships with their clients. His newest work is designed to help individual investors recognize and better manage their investing biases, either independently or with their financial advisors.

Michael Pompian earned his MBA in Finance from Tulane University and a B.S. in Management from the University of New Hampshire. Outside work, Michael loves everything sports related: from watching and coaching youth sports to playing competitive tennis. Along with a family of three teenagers, he has two actively managed poodles and 6 passively managed guitars.

Reviews

[I'm Kian · Rating 4 out of 5]

بین خواندن کتاب بود که متوجه شدم ترجمه ای هم در بازار موجوده.
اگه رشته ی تخصصی تون نیست میتونید فقط فصل های درباره ی سوگیری ها رو مطالعه کنید.بهش میتونید مثل یادگیری تفکر نقادانه نگاه کنید.ساختار فصول هم اینطوره که ابتدا یه شرح میده بعد شرح تکنیکی و بعد خلاصه و بعد تحقیقاتی که درباره اون سوگیری انجام گرفته و در آخر هم یک سری پرسش تا متوجه بشید شما هم اون سوگیری رو دارید یا نه.
ترجمه هم خیلی جا ها خوب بود.خود کتاب هم به معنای واقعی تر و تمیز بود.دست دکتر بدری درد نکنه. البته با معادل هاشون اصلا بر سر مهر نیستم.

[E · Rating 5 out of 5]

This excellent, practical guide helps you apply behavioral finance information to your personal wealth management. Though Michael M. Pompian chiefly addresses a readership of professional investment advisers, any investor can benefit from learning more about the irrational factors that affect investment decisions. Readers can choose among many books about behavioral finance, cognitive biases and neuroeconomics. However, very few books can match this one’s hype-free, objective and accessible exposition of this subject. The author provides a brief history of behavioral finance, a thorough catalog of noteworthy investor biases, advice on how to deal with these biases, examples and the likely direction of future research in the field. getAbstract highly recommends his book for its straightforward language, which makes it widely accessible.

[Praveen Srinivasan · Rating 5 out of 5]

This is one amazing book on behavioral finance. A must read for all investors, traders and portfolio managers.
This is certainly not a one time read. Best would to be make notes and keep revisiting it to make sure one is on track... 👍

[Mark · Rating 4 out of 5]

Gets to the point of psychological investing. Gives several examples with real world applications. Even includes some questions you can use to determine which biases you, or a client, have. Great breadth and depth!

[Mike]

So far, 5 stars. Excellent list of cognitive biases that affect investors, ways you can steer clear, and even ways to take advantage of the suckers out there who don't steer clear. Pure magic.

[Soko · Rating 2 out of 5]

Аль ч тохиолдолд гажуудах юм чинь гэсэн бодолтойгоор дуусгав... Өчнөөн гажуудал...