Business & Economics Books:

Behavioural Finance

A guide for listed equities teams
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Paperback / softback
$67.99
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Description

Many books about behavioural finance relate to relatively naive, individual investors. But professional investors are different. They have usually built their expertise on years of study and experience. And their decisions often result from following thorough and detailed investment processes. This book is about the aspects of behavioural finance that are specifically relevant for investment professionals. The book combines psychological research with real world examples and a discussion of 62 practical applications. The first section discusses the psychological issues and strategies related to determining what is most important in each investment decision, in the face of noise and information overload. It explores how to ensure that financial forecasts are robust, while adequately accounting for easily overlooked statistical processes like mean reversion. This first section also discusses strategies for knowing when to sell, while mitigating the risks of confirmation bias and loss aversion. And it covers how to calibrate one's confidence, in order to determine an appropriate position size. The second and third sections are about how investment professionals work together, and how they understand and communicate with others. These sections discuss how they can most effectively give and receive feedback within their team, how they can communicate clearly with their clients, and how they can get the most out of their meetings with corporate CEOs. Other chapters cover how best to integrate qualitative and quantitative approaches, how to use decision-making analytics and training, and how best to leverage a team's diverse skills. These final chapters are likely to be most relevant for more senior investment professionals, including those with leadership and mentoring responsibilities, and those who are involved in designing investment processes.

Author Biography:

Simon is at the cutting edge of topics that have the potential to transform the roles of investment professionals. In the future they will need to rethink how they collaborate, and they will need to become adept at integrating their expert professional judgments with mechanic decision-making tools. In the face of an increasingly 'noisy' and demonstrably uncertain world, they will also need to become better at determining what really matters, and at predicting the future.Simon is the founder of Behavioural Finance Australia (BFA). At BFA he provides specialist behavioural finance training and consulting to investment managers, major super funds, financial advisers, and other investment professionals. Simon brings a unique combination of finance and psychology to his clients. He is able to engage teams on the psychological considerations related to sometimes technical financial or investment issues, including making a financial forecast, building a business case, creating a valuation model, negotiating a transaction, or assessing a new project's IRR. Simon is the author of three other books on behavioural finance. His first book, 'Applying Behavioural Finance in Australia', details strategies to identify and overcome various investment decision-making biases. The book broaches some of the topics that are discussed in the current book, but its focus is broader than listed equities teams; it provides strategies that are also relevant for major super funds, asset consultant and family offices.
Release date Australia
July 27th, 2022
Author
Audience
  • General (US: Trade)
Pages
316
Dimensions
148x210x17
ISBN-13
9780994610256
Product ID
35920902

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