Beyond Greed and Fear

Produktbeschreibung

Even the best Wall Street investors make mistakes. No matter how savvy or experienced, all financial practitioners eventually let bias, overconfidence, and emotion cloud their judgment and misguide their actions. Yet most financial decision-making models fail to factor in these fundamentals of human nature. In Beyond Greed and Fear, the most authoritative guide to what really influences the decision-making process, Hersh Shefrin uses the latest psychological research to help us understand the human behavior that guides stock selection, financial services, and corporate financial strategy. Shefrin argues that financial practitioners must acknowledge and understand behavioral finance--the application of psychology to financial behavior--in order to avoid many of the investment pitfalls caused by human error. Through colorful, often humorous real-world examples, Shefrin points out the common but costly mistakes that money managers, security analysts, financial planners, investment bankers, and corporate leaders make, so that readers gain valuable insights into their own financial decisions and those of their employees, asset managers, and advisors. According to Shefrin, the financial community ignores the psychology of investing at its own peril. Beyond Greed and Fear illuminates behavioral finance for today's investor. It will help practitioners to recognize--and avoid--bias and errors in their decisions, and to modify and improve their overall investment strategies. 

Inhaltsverzeichnis

* Preface


* Part I: What Is Behavioral Finance


* 1: Introduction


* 2: Heuristic-Driven Bias: The First Theme


* 3: Frame Dependence: The Second Theme


* 4: Inefficient Markets: The Third Theme


* Part II: Prediction


* 5: Trying to Predict the Market


* 6: Sentimental Journey: The Illusion of Validity


* 7: Picking Stocks to Beat the Market


* 8: Biased Reactions to Earnings Announcements


* Part III: Individual Investors


* 9: "Get-Evenitis": Riding Losers Too Long


* 10: Portfolios, Pyramids, Emotions, and Biases


* 11: Retirement Saving: Myopia and Self-Control


* Part IV: Institutional Investors


* 12: Open-Ended Mutual Funds: Misframing, "Hot Hands", and Obfuscation Games


* 13: Closed-End Funds: What Drives Discounts?


* 14: Fixed Income Securities: The Full Measure of Behavioral Phenomena


* 15: The Money Management Industry: Framing Effects, Style "Diversification",
and Regret


* Part V: The Interface between Corporate Finance and Investment


* 16: Corporate Takeovers and the Winner's Curse


* 17: IPOs: Initial Underpricing, Long-term Underperformance, and "Hot-Issue"
Markets


* 18: Optimism in Analysts' Earnings Predictions and Stock Recommendations


* Part VI: Options, Futures, and Foreign Exchange


* 19: Options: How They're Used, How They're Priced, and How They Reflect
Sentiment


* 20: Commodity Futures: Orange Juice and Sentiment


* 21: Excessive Speculation in Foreign Exchange Markets


* Final Remarks


* Notes


* References


* Credits


* Index 

Kritik

This refreshingly iconoclastic book awakens us all to how little we know about financial markets, and how much we have to discover. I particularly enjoyed the reference to the emperor's clothes worn by the mutual fund industry. Shefrin's clear reaffirmation of the fallibility of professional investors will lead even the most impressionable of investors to consider, yet again, the advantages of market indexing strategies.-John Bogle, Founder and Senior Chairman, The Vanguard Group, and author, Common Sense on Mutual Funds 

Autoreninfo

Hersh Shefrin holds the Mario L. Belotti Chair in Finance at the Leavey School of Business, Santa Clara University.