The Behavioral Investor
Behavior is part of the investment process.
Big Idea
Crosby examines how psychological, social, and biological influences can distort investment decisions.
Ego
Confidence can make disconfirming information easier to dismiss.
Emotion
Fear and excitement can change a decision without changing the underlying asset.
Attention
A vivid headline can crowd out less dramatic but relevant information.
Conservatism
Attachment to existing beliefs can delay a necessary update.
Process
Rules and a suitable portfolio can reduce reliance on emotional control in the moment.
Notooo Take
Identify the emotion behind a proposed portfolio change before making it.
- Educational book ideas, not personalized financial advice or promised returns.
One Thing to Keep
Behavior is part of the investment process.