We are often asked about a good book for the layman about behavioural finance – something readable, broad, and with some good real-world applications. Till now, we haven’t known of any such book. But I think I’ve found one….
The picture above is my copy of James Montier’s new “Little book of Behavioral Investing”. If the number of times I bookmark something is an indicator, then James’ book is a winner. It is very readable, yet covers a lot of ground. He manages to review the general investing biases, including the potential underlying cause, as well as some techniques and tactics which might help us improve performance.
While the book probably won’t actually improve your investment performance directly, it is a great intro survey to the field.