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The Little Book of Behavioral Investing

How Not to Be Your Own Worst Enemy
Written by: James Montier
Narrated by: Sean Pratt
Length: 5 hrs and 2 mins
4.5 out of 5 stars (13 ratings)

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Publisher's Summary

Little book, big profits....

Here is a detailed guide to overcoming the most frequently encountered psychological pitfalls of investing.

Bias, emotion, and overconfidence are just three of the many behavioral traits that can lead investors to lose money or achieve lower returns. Behavioral finance, which recognizes that there is a psychological element to all investor decision-making, can help you overcome this obstacle.

In The Little Book of Behavioral Investing, expert James Montier, one of the world's foremost behavioral analysts, takes you through some of the most important behavioral challenges faced by investors. Montier reveals the most common psychological barriers, clearly showing how emotion, overconfidence, and a multitude of other behavioral traits, can affect investment decision-making. This book:

  • Offers time-tested ways to identify and avoid the pitfalls of investor bias
  • Discusses how to learn from our investment mistakes instead of repeating them
  • Explores the behavioral principles that will allow you to maintain a successful investment portfolio

Written in a straightforward and accessible style, The Little Book of Behavioral Investing will enable you to identify and eliminate behavioral traits that can hinder your investment endeavors and show you how to go about achieving superior returns in the process.

©2010 James Montier (P)2010 Gildan

What members say

Average Customer Ratings

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  • Overall
    4 out of 5 stars
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    4 out of 5 stars

First book read on Behavioural Sciences

Narration is brilliant. Overall, found it a good read. Behaviour can lead to better investment approaches.

1 person found this helpful

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    5 out of 5 stars
  • Lance
  • 27-05-11

One of the best investing books

Best uses of a credit in ages, really enjoyed this book. It covers the modern way of investing.

4 people found this helpful

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  • BkkBanker
  • 30-04-15

Great book for the beginner and more experienced

No matter if you have never listened to a book on behavioral finance or if you have listened/read quite a few, this book is great. I fall in the latter category, but still found it a great book. Firstly it gives a good overview of the field, secondly it's well structured and a pleasure to listen to.

1 person found this helpful

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  • Jacek
  • 05-02-12

Intryguing, funny, suprisignly good.

To be honest, I wasn't expecting anything much from the book. Was I positevly suprised once listened to it for the first time.
Although it is just 5 hours read, I enjoyed it really a lot. There are several quizes along the way which made me laugh.

Overall, if you look for a easy implementaion and introduction of behavioral psyhology, this is a really good book to start with.

1 person found this helpful

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    4 out of 5 stars
  • John
  • 25-06-11

I'd Heard a Lot of this Before, But ...

If you have studied human behavior, there is a lot in here that you already know. The author does a really good job of applying it to investing, and showing how you can stop being your own worst enemy.

3 people found this helpful

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  • Alessandro Orlandi
  • 13-05-19

Nice recap of the thinking Fast and Slow

I advise instead Thinking fast and Slow of Kahneman. It's much more detailed. This is more or less a summary of it.

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  • guy
  • 03-05-19

An Investing Classic

I would highly recommend this book to any serious investor. This is a classic alongside Benjamin Gram.

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  • Sasha Naryshkine
  • 03-04-19

Must read. The best behavioral finance book I’ve ever read.

I found myself laughing at common mistakes I’d made myself. This will make you question the entire industry and how you SHOULD react.

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  • Amazon Customer
  • 26-01-19

Great book

This is a very informative book as it highlights areas in which investors should be cognizant about.

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  • Stephen C. Watson
  • 25-09-17

Errational investing

Interesting incite into the mistakes we make while investing. We think of ourselves as rational but so many of our decisions are driven by emotions.

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  • #helpYOUgetGAINS
  • 22-09-17

Required reading for the investor.<br />

Loved it. A great introduction to the subject with implications for all aspects of life.

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    5 out of 5 stars
  • steven Buckley
  • 21-01-13

helps to better control emotion

Wanted a book like this for a while, helps keep my feet firmly on the ground and control those ever lurkingl emotions. it gives me the ability to not follow the herd when investing or trading, Very good book to understand how emotions play a part in the stock market

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  • Mr
  • 15-12-18

Good guide to psychological fallacies.

Good read. There's a ton of fascinating information in here on the numerous psychological quirks and fallacies that humans fall pray to, with an emphasis on those relevant to traders. The main actionable point being that we need to have consistent rules and procedures in place to counter our own psychological frailties.

My main criticism of the book was although there is a great deal of good information here, it's not organized in a way that aids memory or allows you to process it very clearly.

Pratt is his usual competent self as the narrator.

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  • LC
  • 03-10-18

A useful summary/reminder, by not much new

This book provides a useful summary and reminder of common decision making pitfalls, but these are the same as are commonly mentioned in many other books, so there isn't much new here.
Main takeaway is to follow process, as this gives much better results than our default decision making tendencies outside of process.

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  • David Jones
  • 25-07-18

behave!

just the right length. covers the main bad habits that all investors must work to overcome - habits that probably served cavemen very well, but routinely cause investors to lose money.
Montier is clearly a very good writer, and his style translates well to audiobook format.

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  • Rajeev
  • 16-02-18

Good book to introspect investing behaviour

Easy book to listen to with lots of examples and results of experiments done over a period of time. Key is taking time out after reading, doing an honest self-reflection, looking out for behavioural patterns in investing & making appropriate changes.

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  • Matt Lewis
  • 29-01-18

brilliant insights to self sabotage

We all think we are better than we are and this book explains simply why that is the case and suggests ways of addressing it. if we cannot accurately analyse our decisions then how can we expect to improve our performance. every investor needs to read this book and take notes to do a self check once in a while as it will undoubtedly improve their results and therefore profits

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  • I. D. Wright
  • 02-03-16

Excellent

Very good analysis of many human investment bias aspects. Excellent and well read by narrator.

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  • Road Jackson
  • 17-02-20

Humble title, big ideas, brilliant!

Don't be fooled, this book packs in a lot of useful information for people wanting insight into how they invest. The examples are interesting and easy to relate to. This can really help any investor identify their own investing blind spots and makes practical suggestions for learning to manage them.