Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

ISBN-13: 9781394150083 / Angielski / Twarda / 2022 / 224 str.

C Sol

Spis treści

Introduction: The Path of Least Resistance 1Chapter 1 Making Sense of What You See 9Anchoring: An Invisible Hand 9Representativeness: If It Walks Like a Duck 15Money Illusion: The Rule of 72 and the Risk of Inflation 20Recency Effect: A Clear and Present Danger 23Reversion to the Mean: That Makes Sense but Doesn't Answer Anything 27Availability Bias and Distortion: Overestimating What You Can Easily Recall 29Familiarity Bias: Recognizing a Stranger 31Proportional Money Effect: Why We Save Pennies Only to Neglect Dollars 35Mental Accounting: Pigeonholing Money 37Endowment Effect: Loyalty Reward Points are Not Free Money 40Status Quo Bias: The Influence of Inertia 45Chapter 2 Controlling Risk 49Conservativism: Close but No Cigar 49Gambler's Fallacy: Heads or Tails? 51Possibility and Certainty Effect: A Bird in the Hand Is Worth Two in the Bush 52House Money and Break-Even Effect: What Just Happened? 56Disposition Effect: The Worst Time to Lock in a Profit 59Loss Aversion and False Risk Control: Ante Up! 61Chapter 3 Wanting To Be Right 65Overconfidence: We All Can't Be Above Average 65Hindsight Bias Is Convincing: I Knew It! 69Cognitive Dissonance: The Grapes Were Sour Anyway 71Confirmation Bias: Buying and Selling a Boat 73Availability Bias, Recency Effect, and Real Estate: House Prices Always Rise, Right? 76Sunk Cost: Why Camping Seems Affordable 81Barnum and Forer Effect: A Fool Is Born Every Minute 86Loss Aversion Undermines Your Beliefs: Trading Money for Sleep 89Herd Mentality: Consensus Hurts Performance 91Chapter 4 Developing Your Personal Economic Values 99Why Commit to the Eight Steps? 99Personal Economic Values Workbook 103Chapter 5 Adopting Unbiased Habits 113The Point of Impact 113Don't Take It Personally 117Quantify Your Returns 119Keep a Journal of Investment Decisions 121The Power of SMT 122Negotiations 124Just Pick One 125Automate, Outsource, and Schedule 127Stop Checking Your Investments 130Establish Investment Constraints 133Stick to Your Plan 134Reframing Decisions 135No Safety in Numbers 136Money Doesn't Care Where It Came From 137Craft Your Personal Investment Policy Statement (IPS) 138I Knew-It-All-the-Time 145Cut Your Losses 147Trees Don't Reach the Sky 148In the Absence of Research 151Be Average 153The Unbiased Habit Checklist 155Chapter 6 What An Investment Advisor Can and Cannot Do 161The Bottom Line 161Bull Markets and DIY 161Is Passive Investing a Silver Bullet? 166Intuition 169Avoiding Hindsight Bias with Training 172When to Trust Expert Investment Advice 175Know What You Don't Know 177Bias Resistance 179Portfolio Abandonment 181Chapter 7 Can Money Buy You Happiness? 185Happiness, Work, and Retirement 186Happiness and Spending Money 191Happiness and Gluttony 194Health, Happiness, and Your Money 198How Much Is Enough? 200Notes 205Index 209

O autorze

COREEN SOL, Chartered Financial Analyst, has helped investors avoid the impact of behavioral bias during extreme market events for more than three decades. She brings a unique view that combines an academic perspective with a compassionate understanding of how people feel about money in the real world. Coreen is a former adjunct professor at the University of British Columbia Okanagan, manages a private wealth practice in British Columbia, Canada, and sits as a director on the board of CFA Societies Canada, an advocacy organization for investment integrity.