What do you think?
Rate this book
Why Smart People Make Big Money Mistakes And How To Correct Them: Lessons From The New Science Of Behavioral Economics
Why do so many otherwise smart people make foolish financial choices? Why do investors sell stocks just before they skyrocket -- and cling to others as they plummer? Why do shoppers overspend when using credit cards rather than cash? What do our habits of tipping or buying lottery tickets indicate about our relationship with money? In this fascinating investigation of the ways we spend, invest, save, borrow, and waste money, Gary Belsky and Thomas Gilovich reveal the psychological causes -- the patterns of thinking and decision making -- of irrational behavior. Most important, they focus on the decisions we make every day and, using entertaining examples, provide invaluable tips on avoiding the financial faux pas that can cost thousands of dollars each year.
224 pages, Paperback
First published January 1, 1999
Ratings & Reviews
Friends & Following
Create a free account to discover what your friends think of this book!
Community Reviews
Displaying 1 - 30 of 105 reviews
September 6, 2020
Read my full notes from the book at https://medium.com/@karan/smart-peopl...
Now, on to the review:
"Why Smart People Make Big Money Mistakes And How To Correct Them" is one of the best finance books I've read so far (it's more finance and economics). It's a very nice blend of finance and psychology -- the field formally known as behavioral finance.
Since the first edition of the book was published in 1999, I was concerned that the content might be dated. What I forgot was that the way humans think and behave doesn't change in a few decades. As such, most of the cited research and learnings still hold true.
Which bring me to the best thing I liked about this book -- the authors pull in and quote a TON of research. This whole book could be described as an aggregation of behavioral finance research done by a few authors. Each of the eight chapters covers something unique and the book itself doesn't feel fluffed. Each chapter has a very readable, skimmable and consistent format. I do recommend reading page to page and not skimming if you're interested in the subject matter. Speaking of the format, each chapter starts with a thought-provoking story or situation, explains what the actions and influences are, and ends with warning signs and ways to improve.
What I didn't like about the research is lack of diversity in quoted material. Most of the cited research is by Tversky and Kahneman. Now that could very well be because those two did the most work in this field (did they? I don't know), but I'd still like to see a diverse collection of research.
Finally, I would recommend this book to anyone who's new to behavioral finance. It will give you a good base understanding of how human mind operates when it comes to money, what our biases our and how to check (and fix them). I certainly will be applying some of the knowledge I gained!
Now, on to the review:
"Why Smart People Make Big Money Mistakes And How To Correct Them" is one of the best finance books I've read so far (it's more finance and economics). It's a very nice blend of finance and psychology -- the field formally known as behavioral finance.
Since the first edition of the book was published in 1999, I was concerned that the content might be dated. What I forgot was that the way humans think and behave doesn't change in a few decades. As such, most of the cited research and learnings still hold true.
Which bring me to the best thing I liked about this book -- the authors pull in and quote a TON of research. This whole book could be described as an aggregation of behavioral finance research done by a few authors. Each of the eight chapters covers something unique and the book itself doesn't feel fluffed. Each chapter has a very readable, skimmable and consistent format. I do recommend reading page to page and not skimming if you're interested in the subject matter. Speaking of the format, each chapter starts with a thought-provoking story or situation, explains what the actions and influences are, and ends with warning signs and ways to improve.
What I didn't like about the research is lack of diversity in quoted material. Most of the cited research is by Tversky and Kahneman. Now that could very well be because those two did the most work in this field (did they? I don't know), but I'd still like to see a diverse collection of research.
Finally, I would recommend this book to anyone who's new to behavioral finance. It will give you a good base understanding of how human mind operates when it comes to money, what our biases our and how to check (and fix them). I certainly will be applying some of the knowledge I gained!
September 1, 2018
A great supplement to Thinking, Fast and Slow and Freakonomics. There is only so much behavioral economics research out there, so overlap with prominent books is unavoidable. Re-reading huge swaths of material cheapens the experience and you must carefully plan any behavioral economics kick. I've spaced the books over several years and I've found that the studies cited have clung to my brain like cicada--I remembered nearly everything.
Why Smart People Make Big Money Mistakes And How To Correct Them can be classified as (mainly) Kahneman and Tversky's research applied to personal finance. Ironically, this is what many people picked up Thinking, Fast and Slow hoping it would be. Way more approachable with sharp writing, this is a great book. However, the book did next to nothing for me as I'd previously read almost every study that was recounted in the book and read several personal finance blogs regularly. While I made it through the whole thing, I grew tired of it by chapter six.
If you only read one book on behavioral economics, this should be it. If you plan to read several, you need to start with Thinking, Fast and Slow or it will be valueless after seeing the concepts applied here.
See this review and others on my blog
Why Smart People Make Big Money Mistakes And How To Correct Them can be classified as (mainly) Kahneman and Tversky's research applied to personal finance. Ironically, this is what many people picked up Thinking, Fast and Slow hoping it would be. Way more approachable with sharp writing, this is a great book. However, the book did next to nothing for me as I'd previously read almost every study that was recounted in the book and read several personal finance blogs regularly. While I made it through the whole thing, I grew tired of it by chapter six.
If you only read one book on behavioral economics, this should be it. If you plan to read several, you need to start with Thinking, Fast and Slow or it will be valueless after seeing the concepts applied here.
See this review and others on my blog
February 12, 2010
Quick read, but not enough original or thought provoking content to make it memorable. There are other more worthwhile books out there that cover similar themes. The advice was too generic to be applicable/practical and some of the more interesting concepts were given too simplistic a treatment to make them engaging. It probably would have been interesting and novel to someone who hadn't read any behavioral economics books before.
May 16, 2016
Why Smart People Make Big Money Mistakes
Gary Belsky and Thomas Gilovich
This book looks at the behavioral psychology of why people make the financial decisions they do.
Chapter 1 – Mentally categorizing money
We place different values on the same dollar amounts. Often, money that comes as a bonus, for example, we treat much different than the money we earn.
This can be detrimental if we are paying high credit-card interest, and keeping money in a savings account for a rainy day – as long as the rainy day hasn’t arrived, we are losing money.
You’re shopping for a lamp that sells for $100. You discover one across town for $75 – would you make the trip?
Now you’re shopping for a dining room set, which sells for $1775. You discover one across town for $1750, would you make this trip?
This solves the great mystery of why people who aren’t reckless spenders can’t seem to save enough. They are money-wise in some areas – like the large purchases – but loosen their disciple with the “smaller” purchases at the grocery store, for example.
You can use mental accounting to your advantage by having your investment money taken right out of your paycheck – it will never be seen or missed that way.
Chapter 2 – Pain over loss is more intense than happiness over winning
Because we are so scared to lose, we do things that don’t allow us to win. Like sell stocks when the market goes down, because we don’t want to lose more. Or making decisions based on how much we have already spent on it, not the true future of it.
You get a $1000 bonus from work, and a chance for more. Either $500, or flip a coin between $1000 more or 0.
Now suppose you get a $2000 bonus from work, but need to do one of the following: give $500 back or flip a coin between giving nothing back or $1000.
Most folks would take the sure $500 in the first case, but flip the coin in the second. Why? Because they are afraid to lose what they perceive as already theirs.
There are two vacation packages. One has average weather, average beaches, medium-level hotel, average nightlife, and medium temperate water.
The second has lots of sunshine, gorgeous beaches/coral reef, ultramodern hotel, very cold water, very strong winds, and no nightlife.
You are asked to make a reservation. Which do you chose?
Now suppose you are told you have reservations for both, but need to drop one. Which one do you drop?
When people view a decision as one of preference, they focus on the positives. When asked to cancel a reservation, the focus is more on the negatives.
This aversion to loss keeps too many people out of the stock market. It also keeps people holding on the losing investments for longer than they should (something about making the loss final by selling the loser).
They use the analogy of seaworthy boats compared to investments. We wouldn’t give up on the strong boat because we feel it had run its course, and abandon it for a boat with holes because it hadn’t yet had it great days. Yet we often sell the good stocks to go after poor performing ones.
Chapter 3 – Inaction is often the most dangerous action
We generally put too much emphasis on things we already own.
Asked to choose between 4 investment options, students chose: 32% a medium-risk stock, 32% a high risk stock, 18% a T-Bill, and 18% a CD.
But told they already owned one of the investment options, and their choice was to change it for another, then 47% chose to stay with what they already owned (no matter which investment choice they were told they owned).
Ask yourself how much you would sell a ticket you found – or were given – to an event you really want to go to. Now how much would you pay to buy a ticket to the same event? By owning it, we think it has more value. (The example of the Cornell mugs: students were given mugs and asked how much they would sell them for: $5.25. The students who didn’t get the mugs were asked how much they would pay for them: $2.75.)
Often, the “regret aversion” keeps us from doing something. People can be so afraid of regret they will go to great lengths to avoid it.
Mr. A is waiting in line at a theater. When he gets to the ticket counter, he is told he’s the hundred thousandth customer and he won $100.
Mr. B is waiting in line at a theater. The man in front of him wins $1000 for being the one millionth customer, and Mr. B wins $150.
Would you rather be Mr. A or Mr. B?
Some people would actually want to be Mr. A just so they would avoid the pain of knowing they almost won – but didn’t win – the higher prize.
One other thing about regret: most people will regret in the short-term the actions they took. But they will regret long-term the actions they didn’t take. (Should have spent more time with the kids, or should have taken a career more serious, etc.)
Jason Zweig at Money reminds people that someone investing in a lousy stock and sticking with it is probably better off then someone who didn’t invest in stocks at all.
Chapter 4 – Don’t let the numbers fool you
Inflation is probably the biggest number we get fooled by. What our home is worth, how the stock market moves, etc. needs to be adjusted for inflation.
An example of numbers fooling us (and probably some regret aversion playing its hand too) is buying insurance. We get low deductibles because we don’t want to pay out-of-pocket charges when we file a claim. Yet we fail to account for the low odds of filing a claim (about 1 in 10 in any given year).
Compound interest is another number formula that fools us.
Jill invests $50/month into a mutual fund earning 10%/year from age 21 to 29. John, her twin, also invests $50/month into the same fund, but starts at age 37. When they both retire at 65, which account has more money in it? (All told, John invests $22,200, Jill just $4,800).
Jill has $256,650 and John has $217,830.
Little numbers (like the expense ratio in a mutual fund) can add up to be big numbers over time.
Chapter 5 – We affirm our assumptions
Once we make a decision (even though the decision is based on thin information), we become biased toward that thinking.
Students were asked what percentage of African nations were in the United Nations. Before they answered, the teacher spun a wheel with numbers from 1 to 100. Students were told to guess if the number was above or below the random spun number, and then give their actual guess.
When the random number was 10, the average guess was 25. When the random starting point was 65, the average guess was 45.
This works well in bargaining nations, where the starting price becomes an automatic anchor.
Suppose there are 4 cards, each with a number on one side and a letter on the other. The four cards show A, B, 2, 3 and you are asked to prove the following statement by turning over the least number of cards: every vowel has a even number on the other side.
The answer is A and 3. We often can’t get to this answer because it requires we challenge the anchor in our mind that the statement is true.
Broaden your board of advisors, so your anchors see the light of day.
Chapter 6 – You don’t know it all
How do you pronounce the capital of Kentucky: “Loo-ee-ville” or “Loo-iss-ville”? Now how much do you bet you know the correct answer to the question: $5, $50, $500?
The truth of the matter is people are over-confident when it comes to their own abilities. For example, 68% of lawyers involved in civil cases believe their side will prevail. (The answer to the above question is that Frankfort is the capital of Kentucky).
We are poor at guessing how long projects will take (vastly under-guessing).
When we attempt to pick winning stocks, we may also be falling prey to over confidence. 75% of all mutual funds – run by full-time investors – fail to beat the market. From 1991 to 1996, the average return was 17.7%, while the 20% of households that traded the most earned an average return of just 10%.
But we stay overconfident. We remember things as, “heads I win, tails it’s chance.” When something goes right, we take mental credit, and when things go wrong, we attribute it to other causes which we didn’t have control over.
When you make financial decisions, ask your trusted friends about your decision-making process. Not just the result (they may also be over-confident in their answers), but in how you went about making the decision.
Chapter 7 – No news is good news
Often we “invest with the herd.” Because others think a stock is worth X, we believe it must be worth that.
From 1984 to 1996, the average stock mutual fund earned a yearly return of 12.3%, while the average bond mutual fund returned 9.7%
From the same time period, the average investor in a stock mutual fund earned 6.3%, while the average investor in a bond mutual fund earned 8 percent.
This is because investors don’t buy and hold well-researched funds; they switch funds or get in and out of the market. Often because they are chasing the latest fund with spectacular advertised returns. But often a fund does best just before its strategy slows down.
Those who tune in too closely to financial news (print, TV, etc,) probably fare worse than those who tune out. They will buy and hold better than those who are constantly hearing about their investments.
Avoid “hot” investments. It’s a good rule to live by (like something that sounds too good to be true, probably is). Don’t date your investments, marry them. Look for opportunities to be a contrarian.
Finally, buy index mutual funds and sit on them.
Gary Belsky and Thomas Gilovich
This book looks at the behavioral psychology of why people make the financial decisions they do.
Chapter 1 – Mentally categorizing money
We place different values on the same dollar amounts. Often, money that comes as a bonus, for example, we treat much different than the money we earn.
This can be detrimental if we are paying high credit-card interest, and keeping money in a savings account for a rainy day – as long as the rainy day hasn’t arrived, we are losing money.
You’re shopping for a lamp that sells for $100. You discover one across town for $75 – would you make the trip?
Now you’re shopping for a dining room set, which sells for $1775. You discover one across town for $1750, would you make this trip?
This solves the great mystery of why people who aren’t reckless spenders can’t seem to save enough. They are money-wise in some areas – like the large purchases – but loosen their disciple with the “smaller” purchases at the grocery store, for example.
You can use mental accounting to your advantage by having your investment money taken right out of your paycheck – it will never be seen or missed that way.
Chapter 2 – Pain over loss is more intense than happiness over winning
Because we are so scared to lose, we do things that don’t allow us to win. Like sell stocks when the market goes down, because we don’t want to lose more. Or making decisions based on how much we have already spent on it, not the true future of it.
You get a $1000 bonus from work, and a chance for more. Either $500, or flip a coin between $1000 more or 0.
Now suppose you get a $2000 bonus from work, but need to do one of the following: give $500 back or flip a coin between giving nothing back or $1000.
Most folks would take the sure $500 in the first case, but flip the coin in the second. Why? Because they are afraid to lose what they perceive as already theirs.
There are two vacation packages. One has average weather, average beaches, medium-level hotel, average nightlife, and medium temperate water.
The second has lots of sunshine, gorgeous beaches/coral reef, ultramodern hotel, very cold water, very strong winds, and no nightlife.
You are asked to make a reservation. Which do you chose?
Now suppose you are told you have reservations for both, but need to drop one. Which one do you drop?
When people view a decision as one of preference, they focus on the positives. When asked to cancel a reservation, the focus is more on the negatives.
This aversion to loss keeps too many people out of the stock market. It also keeps people holding on the losing investments for longer than they should (something about making the loss final by selling the loser).
They use the analogy of seaworthy boats compared to investments. We wouldn’t give up on the strong boat because we feel it had run its course, and abandon it for a boat with holes because it hadn’t yet had it great days. Yet we often sell the good stocks to go after poor performing ones.
Chapter 3 – Inaction is often the most dangerous action
We generally put too much emphasis on things we already own.
Asked to choose between 4 investment options, students chose: 32% a medium-risk stock, 32% a high risk stock, 18% a T-Bill, and 18% a CD.
But told they already owned one of the investment options, and their choice was to change it for another, then 47% chose to stay with what they already owned (no matter which investment choice they were told they owned).
Ask yourself how much you would sell a ticket you found – or were given – to an event you really want to go to. Now how much would you pay to buy a ticket to the same event? By owning it, we think it has more value. (The example of the Cornell mugs: students were given mugs and asked how much they would sell them for: $5.25. The students who didn’t get the mugs were asked how much they would pay for them: $2.75.)
Often, the “regret aversion” keeps us from doing something. People can be so afraid of regret they will go to great lengths to avoid it.
Mr. A is waiting in line at a theater. When he gets to the ticket counter, he is told he’s the hundred thousandth customer and he won $100.
Mr. B is waiting in line at a theater. The man in front of him wins $1000 for being the one millionth customer, and Mr. B wins $150.
Would you rather be Mr. A or Mr. B?
Some people would actually want to be Mr. A just so they would avoid the pain of knowing they almost won – but didn’t win – the higher prize.
One other thing about regret: most people will regret in the short-term the actions they took. But they will regret long-term the actions they didn’t take. (Should have spent more time with the kids, or should have taken a career more serious, etc.)
Jason Zweig at Money reminds people that someone investing in a lousy stock and sticking with it is probably better off then someone who didn’t invest in stocks at all.
Chapter 4 – Don’t let the numbers fool you
Inflation is probably the biggest number we get fooled by. What our home is worth, how the stock market moves, etc. needs to be adjusted for inflation.
An example of numbers fooling us (and probably some regret aversion playing its hand too) is buying insurance. We get low deductibles because we don’t want to pay out-of-pocket charges when we file a claim. Yet we fail to account for the low odds of filing a claim (about 1 in 10 in any given year).
Compound interest is another number formula that fools us.
Jill invests $50/month into a mutual fund earning 10%/year from age 21 to 29. John, her twin, also invests $50/month into the same fund, but starts at age 37. When they both retire at 65, which account has more money in it? (All told, John invests $22,200, Jill just $4,800).
Jill has $256,650 and John has $217,830.
Little numbers (like the expense ratio in a mutual fund) can add up to be big numbers over time.
Chapter 5 – We affirm our assumptions
Once we make a decision (even though the decision is based on thin information), we become biased toward that thinking.
Students were asked what percentage of African nations were in the United Nations. Before they answered, the teacher spun a wheel with numbers from 1 to 100. Students were told to guess if the number was above or below the random spun number, and then give their actual guess.
When the random number was 10, the average guess was 25. When the random starting point was 65, the average guess was 45.
This works well in bargaining nations, where the starting price becomes an automatic anchor.
Suppose there are 4 cards, each with a number on one side and a letter on the other. The four cards show A, B, 2, 3 and you are asked to prove the following statement by turning over the least number of cards: every vowel has a even number on the other side.
The answer is A and 3. We often can’t get to this answer because it requires we challenge the anchor in our mind that the statement is true.
Broaden your board of advisors, so your anchors see the light of day.
Chapter 6 – You don’t know it all
How do you pronounce the capital of Kentucky: “Loo-ee-ville” or “Loo-iss-ville”? Now how much do you bet you know the correct answer to the question: $5, $50, $500?
The truth of the matter is people are over-confident when it comes to their own abilities. For example, 68% of lawyers involved in civil cases believe their side will prevail. (The answer to the above question is that Frankfort is the capital of Kentucky).
We are poor at guessing how long projects will take (vastly under-guessing).
When we attempt to pick winning stocks, we may also be falling prey to over confidence. 75% of all mutual funds – run by full-time investors – fail to beat the market. From 1991 to 1996, the average return was 17.7%, while the 20% of households that traded the most earned an average return of just 10%.
But we stay overconfident. We remember things as, “heads I win, tails it’s chance.” When something goes right, we take mental credit, and when things go wrong, we attribute it to other causes which we didn’t have control over.
When you make financial decisions, ask your trusted friends about your decision-making process. Not just the result (they may also be over-confident in their answers), but in how you went about making the decision.
Chapter 7 – No news is good news
Often we “invest with the herd.” Because others think a stock is worth X, we believe it must be worth that.
From 1984 to 1996, the average stock mutual fund earned a yearly return of 12.3%, while the average bond mutual fund returned 9.7%
From the same time period, the average investor in a stock mutual fund earned 6.3%, while the average investor in a bond mutual fund earned 8 percent.
This is because investors don’t buy and hold well-researched funds; they switch funds or get in and out of the market. Often because they are chasing the latest fund with spectacular advertised returns. But often a fund does best just before its strategy slows down.
Those who tune in too closely to financial news (print, TV, etc,) probably fare worse than those who tune out. They will buy and hold better than those who are constantly hearing about their investments.
Avoid “hot” investments. It’s a good rule to live by (like something that sounds too good to be true, probably is). Don’t date your investments, marry them. Look for opportunities to be a contrarian.
Finally, buy index mutual funds and sit on them.
November 8, 2018
Um dos melhores livros que já li sobre economia comportamental aplicada a finanças e investimentos.
Sem rodeios, os autores explicam como os vieses e as heurísticas impactam em nossa tomada de decisão no momento em que estamos vendendo/comprando ações, escolhendo onde investir, poupar e etc.
Com perguntas para o leitor responder no estilo de joguinhos para facilitar a absorção do conteúdo, e também com muitas pesquisas no campo das ciências sociais, economia comportamental, neurociência e psicologia.
Ao final de cada capítulo há um resumo do que foi abordado com dicas (no estilo bullet tips) para ajudar.
Obrigatório para quem quer entender mais sobre o comportamento atrelado a finanças e investimentos.
Link Amazon: Why Smart People Make Big Money Mistakes
Sem rodeios, os autores explicam como os vieses e as heurísticas impactam em nossa tomada de decisão no momento em que estamos vendendo/comprando ações, escolhendo onde investir, poupar e etc.
Com perguntas para o leitor responder no estilo de joguinhos para facilitar a absorção do conteúdo, e também com muitas pesquisas no campo das ciências sociais, economia comportamental, neurociência e psicologia.
Ao final de cada capítulo há um resumo do que foi abordado com dicas (no estilo bullet tips) para ajudar.
Obrigatório para quem quer entender mais sobre o comportamento atrelado a finanças e investimentos.
Link Amazon: Why Smart People Make Big Money Mistakes
June 13, 2018
Every Lebanese citizen should read this book!
January 14, 2022
Amos Tbersky and Daniel Kahneman restudied Israeli aviation instructors. One instructor complimented pilots after a especially good flight. On the next flight, the pilots would do worse The other instructor critic pilots after a bad flight. On the next flight, the pilot would do better. The original conclusion was critics produced better results than compliments. But if you think about averages after an especially good flight it makes sense that you would have a more average flight (therefore worse than the previous flight) to meet the average flight. The opposite being true for the pilots who perfected poorly at first. Compliments are now believed to bring better performance than critics. (9-10)
If you are asked to pick the bag with more red chips; one bag has two-thirds red with the rest white and the other bag has one-third red with the rest. You grab five chips from bag A which 4 out if 5 chips are red. You grab 30 chips from bag B which 20 out of 30 are red. 4/5 is a higher percentage than 2/3, but 30 is a larger sample size and therefore the more reliable percentage. (11)
We view the same amount of money differently based on where it came from. We are more likely to spend the $50 that mom gave us as a gift, but we put the $50 we earn into savings. Same thing happens with job bonus vs refund. (26) If a $100 lamp costed only $75 at the store down the street and a $1775 table set cost only $1750 down the street, more people would get the lamp cheaper but not the table set even though you are saving the same amount. (28) Being cost-conscious when making little purchases is where you can often rack up big savings. (29)
If you get a small refund, bonus, rebate, or gift like $250 you are more likely to spend it than if you got a $2,500 refund. The higher the refund the lower your spending rate (marginal propensity). If you got $100 tax refund and spent $80 then your spending rate is 0.8 (30) A man goes on a business trip and is given a $400 bonus. On his trip, he spent $400 about five times over. It seemed Everytime he went into a store or restaurant that he use that $400 bonus to justify all manner of purchases - sucking $1600 from his money. (32)
You are more likely to spend more with a credit card than with cash. If you have $200 in cash then paying $100 cuts your spending money in half. But your spending money with a credit card isn't cut by much when you spend $100. (33)
Jill inherits her grandmother's money, but instead of saving it in the stock market like she does with her other savings she puts it in the bank for fear of losing her grandmother's money. It's not that Jill has fear that she will need of the money for a payment when the stock market value dips. (36)
On black monday in the stock market, most people sold their stocks, but the two who bought stocks were over 80; they saw this before. (37)
Warning Signs that you might be prone to mental accounting if
-you don't think you're a reckless spender, but you have trouble saving.
-youre more likely to splurge with a tax refund than with savings.
-you seem to spend more with a credit card than with cash.
-most of your retirement savings are in fixed-ibcone or other conservative investments. (38)
My take away is keep to my budget (or under budget, bc small, consistent savings add up to big savings). If I get a bonus or a refund then I should put it into savings regardless it's size. Saving even the small amounts can make a difference in the long run. If I have emergency money, then I should out extra money into stock for the long term.
If you have credit card loans pay those off with your savings. The interest on credit cards loans is higher than your savings.
When buying a big ticket item like a house, before spending the extra $3,000, think about if you would spend that $3,000 in something else. $3,000 might not seem like a lot compared to a price of a house. Is spending that additional $3,000 on the house worth it?
If I get a bonus or gift money before spending it ask myself how long it would take me to earn that much money.
If you want to save more, take what you earn in a year and divide it by 13 instead of 12. Then save that 'extea' Monty's money.
The way a situation is framed can influence your decision. Tom asked a group if they would save 20% of their income with only half saying yes. When Tom asked if they could live on 80% of their income, 80% of them said yes. (50)
When people view a decision as one of preference, they focus on the positive qualities of the option. When they have to cancel a reservation, they focus more on negatives. (53)
Keep your stock for the long term if you believe the stock will rise again. But sell stock that you believe will only continue to fall. (56)
People are more likely to sell their stocks that have risen in price than the stocks that have fallen bc if loss aversion. Instead they should trust and keep the stock that has proven to rise in its value. When you drop an investment at a loss, the IRS often allows you to reduce your taxable income by at least some amount of the loss. (57)
SMarT was a program started in a company to increase employees' savings. When they get a raise they put that additional money into savings instead of increasing their budget. (58) it's better to sell losers, and keep winners. (59)
Suck Cost Fallacy is we are willing to risk more when we put our money into something vs something that was free for us. (60)
Warning signs that you might be a victim if loss aversion or the suck cost Fallacy if
-you make important spending decisions based on how much you've already spent.
-you generally prefer bonds over stocks
-you tend to sell winning investments more readily than losing ones.
-you're seriously tempted to take money out of the stock market when prices fall. (65)
Put no more than 10% of your long-term savings into stocks if individual corporations to avoid rushing too much if your savings on your picking skills. (68)
Be diverse in your investments (stocks, stocks matual funds, bonds, bonds mutual funds, and real estate). If you have a loss in one area, the success in another area of your portfolio will make you less likely to react emotionally and do something drastic.
Follow the law of five years. If you are saving for your child's college fund or retirement, plan to take it out if stocks five years early to avoid a market swoons and place it into a CD or some such. (70)
100 minus your age rule: if you are 84 (100-84=16), then 16% I'd your long-term savings should be in stocks (in an index mutual fund or two) even folks who draw current income from their investments, retirees, so their money will grow faster than inflation. (71)
If you are debating the sale of an investment (or a home) remember that your goal is to maximize your wealth and your enjoyment. The goal is not to justify your decision to buy the investment at whatever price you originally paid for it. You must evaluate all investments (and expenses) based in their current potential for future loss and future gain. (73)
If someone gave you the car for free, ask yourself if you would still pay for those repairs or get a new car. If you paid $100 a share, and now it's selling for $25 a share. If you believe that the lower price is a bargain, hold on and maybe even buy more shares. But if it's not-if given the chance you would pass on the opportunity to buy the same shares at any price today- then it is time to sell. (74)
Losses on investments that you've held for less than a year can be written off against capital gains; losses held longer can be deducted from ordinary income. Therefore seeing your loss as a gain.
The more frequently you check, the more you will notice - and feel the urge to react to -thr ups and downs that are an inevitable part of the stock and bind markets. Most investors who don't trade professionally, a yearly portfolio review is frequent enough to make necessary adjustments in your allocation if assets. (75)
It's not always what you do that hurts your pocketbook, but what you choose not to do. (77)
The decision to delay or take no action became more likely when there were many attractive options from which to choose.
The more choice, the harder the choice.
Herbert Simon describes two types of buyers. The maximizers want to know everything about a choice. They spend a lot of time, effort, and emotion researching options in hopes of making the best choice possible. Satisfiers are looking for "good enough" and they usually make choices through a combination of the best available information, gut instinct and the advice from what we call "trusted screeners". Maximizers may end with more negative feelings than positive ones. (80)
People experience more regret over their mistakes of action in the shirt term, while regrets of inaction are more painful in the long run. Mark Twain said, "20 years from now you will be more disappointed by the things you didn't do than by the ones you did do." (100)
You might suffer from decision paralysis if you tend to beat yourself up when your decisions for be turn out poorly. Or you delay making investment or spending decisions.
One way is to limit your choice set. Find someone you trust and who knows or is willing to research the subject of your decision. Then ask your trusted screen to offer you 3 options from which to choose.
Remember that deciding not to decide (postponement, delay, procrastination) is a decision.
Someone who invested in a lousy stock mutual fund 15 years ago - and stuck with it - is probably better off today than someone who didn't invest in stocks at all. Our point is this: Even if a financial decision isn't perfect (most aren't), it may still leave you in a better position than if you'd done nothing. To combat these tendencies, imagine how you'd feel if a proactive step you are considering worked out - but you didn't take the chance. Think of how you'd feel if that investment rise in price as you thought it might, or if the price of that stereo went up 10% by the time you realized that you really do want better sound quality. (101)
Investing a set amount of money at regular intervals in a stock or bond or mutual fund - regardless of whether the markets are rising or falling. In this way, you end up buying fewer shares when the price of an investment is high and more when the price is lower. (102)
Set deadlines...maybe even ask someone else to pick the deadlines for you so you feel more responsible.
When deciding to switch stock, think about each stock as though you are evaluating each stock to decide which to invest instead of fighting the urge to keep the money in its current stock. Or look at the situation as not which stock to select, but which one to reject. This helps you focus on the positive and negative attributes of your options. One pose it as you have all the options and you need to decide which ones to sell -which ones do you definitely don't want to own. (103)
Ask an expert for advice.
Peter, Paul and Mary each bought a home that cost $200,000, and each ended up selling their home one year later. During Peters year of homeownership, the country experienced a period of 25% deflation and Peter sold his house for 23% less than he paid. During Paul's twelve months, inflation rose 25% and he sold his house for 23% more than he paid. As more Mary, the cost of living stayed the same and she sold her house for 2% less than she paid. Which of the three came out the best?
Peter fared the best, bc when inflation is accounted for he had a 2% gain in buying power whereas his friends had a 2% loss in buying power. (107)
Box on page 115.
Buying fewer stock earlier results in a higher end amount bc of compound interest than more stock later. (122)
Individual investors who trade stocks or bonds frequently: too often their gross profits are eroded by the commissions or transaction costs they incur with each trade. (123)
Expense ratios from stock mutual funds range from as low as a fifth of 1% (of fund assets) to more than 3%, depending on the kinds of securities the fund buys (foreign stocks are more expensive to trade than us shares) and the greediness of the fund operator. The expense ratio tells you how much the fund operator will subtract from your account every year. For example, a 2.5% expense ratio means the fund operator will take off $2.50 from every $100 you have in the fund. (124)
You may have number numbness if you have very low insurance deductibles. Or you invest without much concern about commission costs and management fees. (125)
Remember that the people responsible for the ten years if success may no longer be managing the fund. (126)
Chance plays a far greater role than you think in investment performance, you should playthe averages.
Index funds are essentially mutual funds that mirror the benchmark stock averages in different categories (S&P 500 index fund is an archetype - the average of 500 stocks). Index funds don't require a lot of buying and selling - since the stocks in the indexes they attempt to mirror don't change that often- their expense ratios (and tax bills) are generally the lowest in the fund world. (127)
If you invest in mutual funds, pay close attention to their fee structures, which are clearly outlined in the prospectus. As a rule, steer clear if funds that charge more than 1% in annual expenses. (129)
There are four index cards in front of you. Each has a letter on one side and a number on the other. The sides facing up show the following -A, B, 2, and 3. Your mission is to assess the validity if this statement: "all cards with a vowel on one side have an even number on the other." Which cards would you turn over to determine whether that statement is true or false?
You check card A and 3. We have a reflex to confirm things to be true, but we need to check for contradicting information. (147)
You maybe prone to confirmation bias or anchoring if
-you're especially confident about your ability to negotiate and bargain.
-you make spending and investment decisions without much research
-you're especially loyal to certainly brands for mindless reasons.
-you find it hard to sell investments for less than you paid
-you rely on sellers to set a price rather than assessing the value yourself (149)
Don't keep more than 10% of your 401k assets in your own company's shares. (176)
If you are a person who's prone to kicking yourself for investment opportunities that you missed, we suggest you write down every investment idea you have for at least a month, then tuck that paper away. In about a year, take it out and see how all your picks have done. (179)
Most experts counsel homeowners to add 10% to contractors remodeling estimates, in both cost and completion time. Our experience suggests 25% may be a better figure. The key is to applythr discount on both sides of the transaction. (179)
Before getting a discount package, subscription, and membership, experiment with the product for a couple of months to determine how much you'll really use it. (180)
To beat overconfidence is to establish rules for decision making now when you're not actually making the decision.
If George and Jane wanted to sell their Lexus, then it was truly worth only what people were willing to pay for it- but only if George and Jane wanted to sell. If they didn't, then the value of their Lexus was theirs alone to decide. (183, 187)
You may be prone to following the herd if
-you make investment decisions frequently
-you invest in "hot" stocks or other popular investments
-you sell investments bc they're suddenly out of favor, not bc your opinion of them has otherwise changed.
-you're likely to buy when stock prices rise and sell when they are falling.
-you make spending and investment divisions based solely on the opinions if friend's, colleagues, or financial advisors.
-your spending decisions are heavily influenced by which products, restaurants, or vacation spots are "in" (202)
Financial fads are a lot like buses. There is no sense running after one, since another is certainly on its way. Take the time and effort to thoroughly research any large-scale financial endeavor. If you're not sure if you have missed the boat, we urge you to remember the first rule of poker: if you look around the table and can't figure out who the sucker is, it's you.
Avoid hot investments: that'd particularly true with mutual funds, which relentlessly advertise their recent records as a way to lure investors. But funds often rack up their gains in short bursts if a few months or a year. By the time you sign up, the fun could be over. That's one reason we advise investing in index funds. But if you nonetheless choose to invest in actively manag d mutual funds, you should concentrate on less trendy portfolios whose performance records are consistently good, not recently great. (204)
It's crucial that you assemble a portfolio of a half dozen to a dozen major investments (fewer if you invest in funds, more if you buy individual stocks) and stay with them for the long term - at least five years and preferably longer.
Ignore the news.
Set rules for yourself on what you will do when the stock market shoots up or plummets down so you don't buy too late or sell too early.
Focus on those investments that the general public has turned it's back in. The smartest way to evaluate stocks is to focus on those with below-avrragr price-to-earnings ratios (P/Es). A P/E is simply the ratio btw a stocks price per share and it's profits per share. It allows every company to be measured in an equal basis, regardless of wise or business.
For example, if Consolidation Steel is selling for $10 a share and has earnings per share of $1, the stock's price-to-earnings ratios is ten to one. Similarly, if Amalgamated Steel is selling for $100 a share but has earnings per share of $20, the stocks P/E is five to one. Two steel companies, the $100 stick is actually cheaper, a better bargain: For every $1 of Amalgamated profits, you must pay $5; $1 worth if Consolidated profits will cost you $10. The reason investing in low P/E stocks can be considered a contrarian approach is this: P/Es reflect how much of a premium other investors are willing to pay to own shares of a given company. The higher the P/E, the higher the premium - and, therefore, the more popular that stock is. You can make a lot more money buying out-of-favor stocks with low P/RS than criwd-pleasing stocks that may be too highly priced and ripe for a fall.
Of course, it's not easy discerning worthwhile stocks with low P/Es from those that are justifiably ignored by most investors and thus valued at bargain-basement prices. One way to screen is to invest only in those with sound balance sheets-in other words, not too muc
This entire review has been hidden because of spoilers.
Read
June 27, 2011This is a great book: fun to read with lots of great information, not strictly financial advice but an exploration of behavioral economics (using psychology to explain some of the choices we make that seem at odds with our best interest). Chapters are introduced with a story and you are asked to react; the authors then explain how the situation or presentation influences your choice.
The last chapter summarizes the book. Here are the major points I took away:
-mental accounting can be good (setting aside money for college) or bad (spending your tax refund freely -- it's just deferred from your paycheck)
-losses hurt more than gains please. This is why it's hard to sell losers (and why you might "lock in" winners by selling too early)
-money spent doesn't matter. The "sunk cost fallacy" causes people to make decisions based on past actions rather than present merits
-framing matters. If you have a hard time deciding between choices, imagine you have all of them and think about which you should drop
-don't spend too much time paying attention to financial news; you can end up "anchoring" -- fixating on a particular number
-people are overconfident. Also, beware confirmation bias, the inability to recognize contradictory information
The book also has some standard practical advice that you can find in other books; what this does is explain the psychology behind those mistakes.
The last chapter summarizes the book. Here are the major points I took away:
-mental accounting can be good (setting aside money for college) or bad (spending your tax refund freely -- it's just deferred from your paycheck)
-losses hurt more than gains please. This is why it's hard to sell losers (and why you might "lock in" winners by selling too early)
-money spent doesn't matter. The "sunk cost fallacy" causes people to make decisions based on past actions rather than present merits
-framing matters. If you have a hard time deciding between choices, imagine you have all of them and think about which you should drop
-don't spend too much time paying attention to financial news; you can end up "anchoring" -- fixating on a particular number
-people are overconfident. Also, beware confirmation bias, the inability to recognize contradictory information
The book also has some standard practical advice that you can find in other books; what this does is explain the psychology behind those mistakes.
June 18, 2012
This book made for a quick yet informative read as the authors explored behavioral economics and explain why what we intuitively think is right or best for us financially isn't always so. If you've read titles like "Freakonomics", quite a bit of the material may seem familiar. But unlike "Freakonomics", the authors spent more time focusing on the basics of behavioral economics so that you can understand the key concepts that drive this field of study. First published in 1999, I was concerned that the book may feel dated. But it didn't feel dated at all especially with the advantage of hindsight to see how the authors often predicted the behavior of individuals and institutions in the run up the collapse of the financial markets in 2008.
Although the book is often recommended as a personal finance book, most of the "recommendations" can be found in other introductory books on personal finance. This book really is mostly about behavioral economics. But this book helps explain why you want to follow the advice provided and more importantly, how to avoid falling into the traps that cause so many people to fail or do poorly when making financial decisions.
Although the book is often recommended as a personal finance book, most of the "recommendations" can be found in other introductory books on personal finance. This book really is mostly about behavioral economics. But this book helps explain why you want to follow the advice provided and more importantly, how to avoid falling into the traps that cause so many people to fail or do poorly when making financial decisions.
January 22, 2019
I like to read a money/wealth management at the beginning of every year and this year, this was it. In the beginning I wasn't sure this book would be particularly helpful for me. There was a lot of discussion on the importance of investing. I already invest through my employer-sponsored insurance plan so this didn't feel like particularly relevant advice. I guess what was helpful was the advice that most people are terrible at making investment decisions and the best decision they can make is to invest in a broad-based index fund and then forget about, limiting reviews to annually or so. This put my mind at ease that I don't need to read books like "Investing for Dummies," because I likely still won't make good investment decisions and it's OK to just leave it in the hands of my investment firm. As the book progressed, the authors went over common fallacies and biases people fall prey to and can effect their money decisions. While none of the biases and fallacies were new to me, I found them helpful to understand in the context of spending decisions. Overall, I would recommend this book to others.
March 7, 2013
A fine book - the only reason I didn't rate it higher is that if you've read any of the popular literature about behavioral economics before, you will be familiar with the bulk of the book. The authors do a good job of relating those conclusions to financial matters, but knowing the "wow, people ARE irrational!" experiments removes some of the more interesting parts.
November 21, 2014
Loved reading this book. It gave an insight to our relationship with money and why we act the way that we do with money. Some of the concepts weren't new to me as I have read about them in Dan Ariely's book. I guess, there are just a few studies on which to base their writing. Nonetheless, this is a good eye opening book if you've always wondered why you do the things that you do with money.
February 8, 2016
Very handy book, I enjoyed it both as a person interested in behavioral economics, and as someone who wants to manage his money wisely. Some of the stuff is more known to people who are already familiar with Cahneman or Arieli, but there's a lot of new stuff as well. Lightly and humourously written, with points of summary at the end of each chapter - great handbook on the subject.
November 4, 2015
How behavioral economics affect your decisions and how to mitigate them. I don't feel like I learned a lot since I generally follow the suggested principles in the book but I agree with them and there were some things I hadn't read about before like eliminating equally weighted items on a pros/cons list to help you make your decision.
February 10, 2016
Just OK. Made some fairly interesting points, but overall pretty obvious and boring.
May 18, 2016
Interesting how they combined psychology with the way we spend money. Rather rudimentary with few (or none) applicable new ideas. easy read.
June 23, 2015
First book I've read about behavioral economics, really interesting in how it tackles the psychology behind why we make certain decisions (both in our own interest and not).
July 19, 2015
A pleasant summary of introductory material. Readers that are mildly familiar with the subject discussed will find nothing new in this book.
December 26, 2015
I'm a self employed musicians that's addicted to behavioral economics books. I found this one great and a very easy read. good read
Read
February 12, 2016recommended by WSJ 11-29-30-2014 p. B9, best books for investors
May 9, 2016
An older book 1999 on behavioral economics that serves as a nice foundation. Easily readable but slightly annoying format that's a bit too simplistic.
February 2, 2017
My review is a bit skewed. Raise your hand if you like economics? Personal finance? Psychology? For me, all 3 topics are really interesting and fun to learn about. This merges all 3 so if they aren't your cup of tea this one may not be for you. Regardless though, the book is a quick read that is engaging.
The authors have a fun way of drawing you in and provide lots of predicaments to think through to prove their points, often about the shortcomings of human psychology in decision making. Having studied these topics before I've seen many of these puzzles before (after all this book was written 20+ years ago!) and yet I still found myself giving the situations a fresh look and my mind fell into many of the same traps. Stupid brain! I appreciate the authors' description of personal finance being quite a bit like losing weight, you still have to eat, you can't just stop everything while you figure things out. You have to lose some battles while you fight to win an increasing amount of them.
The only negative I would mention is that increasingly the book progressed into using investing as an example or framework for discussion. While that is interesting and enlightening, I found the other personal finance examples much more interesting. Perhaps that is because I've spent my career contemplating investing options and behaviors.
Overall this was a great book and like Naked Stastics feels like a professor making an important and high level topic fun and accessible to the masses.
The authors have a fun way of drawing you in and provide lots of predicaments to think through to prove their points, often about the shortcomings of human psychology in decision making. Having studied these topics before I've seen many of these puzzles before (after all this book was written 20+ years ago!) and yet I still found myself giving the situations a fresh look and my mind fell into many of the same traps. Stupid brain! I appreciate the authors' description of personal finance being quite a bit like losing weight, you still have to eat, you can't just stop everything while you figure things out. You have to lose some battles while you fight to win an increasing amount of them.
The only negative I would mention is that increasingly the book progressed into using investing as an example or framework for discussion. While that is interesting and enlightening, I found the other personal finance examples much more interesting. Perhaps that is because I've spent my career contemplating investing options and behaviors.
Overall this was a great book and like Naked Stastics feels like a professor making an important and high level topic fun and accessible to the masses.
March 25, 2023
ISBN: 0 684 84493 1
This book was a smooth and easy read. I was interested in it because I took a behavioral finance course in my doctoral program and I have developed an interest in human behavior in financial decisions. What I liked about the book was that it took some rather involved research and made the topics very readable. It also had all of the big names in behavioral finance (The book refers to the field as behavioral economics) such as Thaler, Kahneman, Tversky, Statman, Malkiel and many others. The book discusses the following topic and human behaviors that cause humans to think a certain way:
• The endowment effect
• The efficient market hypothesis
• Framing
• The status quo bias
• Oversensitivity to loss – Prospect theory
• Anchoring
• Paralysis
• The money Illusion
• The bigness bias
• Overconfidence
The writing is clear and very good and the stories and examples are excellent. It is a great review for anyone that is interested in the behavioral fields including marketing. The authors even make suggestions on how to overcome bad habits that can make problems for consumers and investors. They discuss better ways to make choices and suggest trade offs and tax issues. The final chapter does a quick review of the main points of the book and is a good chapter to review after having read the book. Overall a cheap and easy read that will really have you looking at your own behavior.
Mark D
This book was a smooth and easy read. I was interested in it because I took a behavioral finance course in my doctoral program and I have developed an interest in human behavior in financial decisions. What I liked about the book was that it took some rather involved research and made the topics very readable. It also had all of the big names in behavioral finance (The book refers to the field as behavioral economics) such as Thaler, Kahneman, Tversky, Statman, Malkiel and many others. The book discusses the following topic and human behaviors that cause humans to think a certain way:
• The endowment effect
• The efficient market hypothesis
• Framing
• The status quo bias
• Oversensitivity to loss – Prospect theory
• Anchoring
• Paralysis
• The money Illusion
• The bigness bias
• Overconfidence
The writing is clear and very good and the stories and examples are excellent. It is a great review for anyone that is interested in the behavioral fields including marketing. The authors even make suggestions on how to overcome bad habits that can make problems for consumers and investors. They discuss better ways to make choices and suggest trade offs and tax issues. The final chapter does a quick review of the main points of the book and is a good chapter to review after having read the book. Overall a cheap and easy read that will really have you looking at your own behavior.
Mark D
January 2, 2023
It’s about 3x longer than it needs to be and doesn’t include original ideas. Primarily just a synthesis of taversky, Richard Thaler and practical personal finance.
At this point there are better books on practical personal finance (I will teach you to be rich comes to mind) and behavioral economic subjects like loss aversion, overconfidence and anchoring. YouTube is a better source to understand each behavioral bias.
In general if you feel like you must read this book…or if you bought this book and suffer from sunk cost bias (see what I did there)…just start with the bolded rectangles and identifying behaviors at the end of each chapter. It’s a good summary of each topic. The meat of the book is rehashed BE theory that you can get elsewhere.
At this point there are better books on practical personal finance (I will teach you to be rich comes to mind) and behavioral economic subjects like loss aversion, overconfidence and anchoring. YouTube is a better source to understand each behavioral bias.
In general if you feel like you must read this book…or if you bought this book and suffer from sunk cost bias (see what I did there)…just start with the bolded rectangles and identifying behaviors at the end of each chapter. It’s a good summary of each topic. The meat of the book is rehashed BE theory that you can get elsewhere.
November 19, 2017
Behavioral economics became buzz word when Nobel economics prize 2017 was awarded to Richard Thaler for his contribution to this subject. That's how I stumbled upon this book. This book reveals some eye opening habits of ours, which when to think of it does not seem very logical/rational to but we do it anyway unknowingly (Initially I was in denial stage considering myself smart to take decisions but exercises proved me wrong !). This books is very much important in Financial literacy, in understanding our saving and spending behavior, why we act in certain way, and what can we do to overcome it slowly but surely.
March 21, 2018
Highly Recommended
As I get older (and hopefully wiser), I’ve begun to understand some of the money mistakes I’ve made along the way. After reading Why Smart People Make Big Money Mistakes, I see that I’ve fallen prey to many of the issues raised by this excellent book. This book does a wonderful job of explaining how humans are naturally inclined to focus on the short term and have multiple inherent biases in their reasoning that lead to big money mistakes. More importantly, it provides thoughtful approaches to minimize those mistakes so that the reader will be better able to manage their finances.
As I get older (and hopefully wiser), I’ve begun to understand some of the money mistakes I’ve made along the way. After reading Why Smart People Make Big Money Mistakes, I see that I’ve fallen prey to many of the issues raised by this excellent book. This book does a wonderful job of explaining how humans are naturally inclined to focus on the short term and have multiple inherent biases in their reasoning that lead to big money mistakes. More importantly, it provides thoughtful approaches to minimize those mistakes so that the reader will be better able to manage their finances.
December 21, 2021
The practical advice I received from this book can be summed up as follows:
• Numerical illiteracy can cost you big rupiahs.
• Take odds/probabilities into account when making financial decisions on topics such as insurance.
• Savings are better than spendings.
• Stocks are better than bonds. Passively managed mutual funds are better than actively managed mutual funds. Nothing is better than index funds. Everything is better than a low interest savings account.
• Avoid financial news.
• Avoid financial fads. You have probably missed the bus already by the time you hear of it.
None of this is advice I hadn't read elsewhere or heard before.
2 stars.
• Numerical illiteracy can cost you big rupiahs.
• Take odds/probabilities into account when making financial decisions on topics such as insurance.
• Savings are better than spendings.
• Stocks are better than bonds. Passively managed mutual funds are better than actively managed mutual funds. Nothing is better than index funds. Everything is better than a low interest savings account.
• Avoid financial news.
• Avoid financial fads. You have probably missed the bus already by the time you hear of it.
None of this is advice I hadn't read elsewhere or heard before.
2 stars.
June 26, 2023
I liked the lessons this book gave. There was nothing groundbreaking or revolutionary, no get-rich-quick scheme, but simple and plain facts and research. I like when the author thinks about the reader and does their best to summarize the information at the end. It is also evident that the book has been written in the simples possible manner so that anyone can read it and understand it. Such books are incredibly useful to the vast majority of people, who are not super rich nor super poor, and can help them elevate their riches significantly over time, should they follow the steps and tips written in the book.
August 17, 2019
As a marketer and someone interested in investing, I found this book extremely interesting. Many of the principles of decision science and behavioral economics have been explored in recent books like The Undoing Project, but this book looks specifically at applying these concepts to how we save spend and invest money. A great primer for serious investors and those struggling to improve their financial situations.
Displaying 1 - 30 of 105 reviews