Behavioral Finance and Your Portfolio: A Navigation Guide for Building Wealth (Wiley Finance) - Hardcover

Pompian, Michael M.

Hardcover

ISBN 10: 1119801613 ISBN 13: 9781119801610

Publisher: Wiley, 2021

Synopsis

Cognitive and emotional biases can wreak havoc with investor portfolios. Poor investment decision making caused by behavioral errors, especially in times of high market volatility, leads to poor financial outcomes - a material problem for both new and experienced investors.  Whether you're mired in loss aversion, suffer from anchoring bias or you're sorting your portfolio into various mental accounts, investor biases will prevent you from maximizing your wealth. But you can learn to challenge your own biases and prevent costly investment errors!

In Behavioral Finance and Your Portfolio, veteran investor and advisor Michael M. Pompian delivers a thorough grounding in the most important investor biases you're likely to encounter when making crucial investment decisions.  Perhaps the most critical insight, knowing the difference between emotional and cognitive biases, will help you understand what makes you tick as an investor.  Full of case studies and quizzes, this book will help you identify and diagnose your own biases. You will become a better investor, even as you deal with the stresses of investing in the real world.

You'll learn to take control of your decision-making even when challenging markets can push fear or greed to uncomfortable levels. You'll also discover how to analyze your options, either alone or alongside your investment advisor, as well as how to make better investment decisions overall--and the benefits of backing up those decisions with hard data. .

Relying on his decades of experience in financial markets as both an investor and advisor, Pompian shows you how to understand your unique behavioral investor type, and how to improve decisions based on your individual tendencies. Perfect for individual investors, financial advisors, portfolio managers and other financial professionals, Behavioral Finance and Your Portfolio will earn a place in the library of any conscientious investor hoping to gain perspective on cognitive patterns and biases that may be impairing their ability to achieve the best possible return on their investments.

About this title

About the Author

Michael M. Pompian is the Founder and Chief Investment Officer of Sunpointe Investments, an investment advisory and wealth management firm in St. Louis, Missouri.   

Michael has written five books: Advising Ultra Affluent Clients and Family Offices (Wiley 2009), Behavioral Finance and Wealth Management (Wiley 2006), Behavioral Finance and Wealth Management, 2nd Edition (Wiley 2012) and Behavioral Investor Types (Wiley 2015). He writes a monthly column for Morningstar Advisor and has been quoted in Money Magazine, The New York Times, Bloomberg, CNBC among other media outlets. Michael holds the Chartered Financial Analyst (CFA), Chartered Alternative Investment Analyst (CAIA), Certified Financial Planner (CFP®) and Certified Trust Financial Advisor (CTFA). He is a member of the CFA Institute, the New York Society of Securities Analysts (NYSSA) and the CFA Society of St. Louis. He is a regular speaker at family office conferences globally.

From the Back Cover

BECOME A SMARTER, MORE EFFECTIVE INVESTOR BY ADDRESSING YOUR COGNITIVE AND FINANCIAL BIASES
Biases distort the investment decision-making of all sorts of investors, transcending wealth level and investor sophistication. Armed with in-depth knowledge of their own unique bias patterns, investors can learn to make more strategic decisions, based on substantiated data.

Behavioral Finance and Your Portfolio offers readers an opportunity to take control of their investing behavior by mitigating the impact that cognitive and emotional biases have on their investing behavior. Accomplished investor, advisor, and author Michael M. Pompian shows you how cognitive errors such as loss aversion, availability, and overconfidence can all combine to reduce your investment returns and needlessly complicate your portfolio.

You'll discover how to counteract these biases by using hard data to ground your investment behavior, and avoid being sucked in by the fear and greed that dominates in bear and bull markets.

Designed for financial professionals, portfolio managers, advisors and individual investors, Behavioral Finance and Your Portfolio is an indispensable guide to making the most of your investment returns even when biases and distortions in your thinking are actively working against you.

From the Inside Flap

Cognitive and emotional biases can wreak havoc with investor portfolios. Poor investment decision-making caused by behavioral errors, especially in times of high market volatility, leads to poor financial outcomes―a material problem for both new and experienced investors. Whether you’re mired in loss aversion, suffer from anchoring bias, or you’re sorting your portfolio into various mental accounts, investor biases will prevent you from maximizing your wealth. But you can learn to challenge your own biases and prevent costly investment errors!

In Behavioral Finance and Your Portfolio, veteran investor and advisor Michael M. Pompian delivers a thorough grounding in the most important investor biases you’re likely to encounter when making crucial investment decisions. Perhaps the most critical insight, knowing the difference between emotional and cognitive biases, will help you understand what makes you tick as an investor. Full of case studies and quizzes, this book will help you identify and diagnose your own biases. You will become a better investor, even as you deal with the stresses of investing in the real world.

You’ll learn to take control of your decision-making even when challenging markets can push fear or greed to uncomfortable levels. You’ll also discover how to analyze your options, either alone or alongside your investment advisor, as well as how to make better investment decisions overall―and the benefits of backing up those decisions with hard data.

Relying on his decades of experience in financial markets as both an investor and advisor, Pompian shows you how to understand your unique behavioral investor type and how to improve decisions based on your individual tendencies. Perfect for individual investors, financial advisors, portfolio managers, and other financial professionals, Behavioral Finance and Your Portfolio will earn a place in the library of any conscientious investor hoping to gain perspective on cognitive patterns and biases that may be impairing their ability to achieve the best possible return on their investments.

Edition details

• Publisher: Wiley
• Publication date: 2021
• Language: English
• ISBN 10: 1119801613
• ISBN 13: 9781119801610
• Binding: Hardcover
• Edition number: 1
• Number of pages: 320