Insights into irrational minds and market applied behavioural finance. James mont ier on the little book of behavioral investing mar. Whats a habit all successful value investors have in common. There are notable exceptions to this generalization. This week, we speak with james montier, a member of gmos asset allocation team. In this paper, james lays out a simple and straightforward. Ray dalio gives his list of top 20 books that every investor should read, taken from his writings, interviews, and shareholder letters over the years. Tim du toit is the editor and founder of eurosharelab. Value investing bruce greenwald value investing from graham to buffet and beyound pat dorsey the little book that builds wealth there is always something to do the peter cundill investment approach philipp a.
This article is the combination of two research reports i found where james recommended the best investment books he has come across. He argues that value investing is the only approach that puts risk management at the heart of portfolio construction. However, this lack of attention to detail tends to come back and bite investors in the arse during bad times. As ben graham said analysis should be penetrating not prophetic. Tools and techniques for intelligent investment is a compendium of the authors pieces and speeches while he was chief strategist at societe generale he is presently at grantham mayo according to the dust jacket. And this format is at times frustrating, since occasionally these notes reference previous ones, which the reader of the book has either no access to, or which are included on later pages of the book. James montier gives us a very accessible version of why we as investors are so. Great book on behavior finance and how our brains affect our investment decisions. Prior to joining gmo in 2009, he was cohead of global strateg. The little book that builds wealth by pat dorsey the little book that saves your assets by david m. James montier the little book of behavioral investing. How not to be your own worst enemy little books, big profits uk 30mar2010 by james montier kindle edition.
Literally the history of numbers and the development of probability theory from the earliest days of intelligent, degenerate gamblers. James montier suggested reading list this article is the combination of two research reports i found where james recommended the best investment books he has come across. James montier in the past i have put together reading lists of books. Montier is a visiting fellow at the university of durham and a fellow. Among the essays were book recommendations he made from 2009 through 2012. How not to be your own worst enemy little book, big profits, by james montier. The deep causes of secular stagnation and the rise of. How not to be your own worst enemy little book, big profits and was released on february 2, 2010. Value investing world is a blog dedicated to promoting the multidisciplinary approach to investing and development of as charlie munger describes it a. A market pros take on what to do when centralbank policies are forcefeeding risk assets to investors. They take a deep dive into the economic governance system known as neoliberalism, describing its four pillars and arguing that it ultimately causes economic stagnation and instability, which engenders the rise of.
The flaws of finance video and gmo whitepaper video found via simoleon sense. The little book of behavioral investing book olathe. Whats on their shelf moi global book recommendations february 15, 2016 in featured, reading recommendations. A practitioners guide to applying behavioural finance explores the biases we face, the way in which they show up in the investment process, and urges readers to adopt an empirically based sceptical approach to investing. James montier is a member of gmos asset allocation team. Pounding the table is just what montier has been doing recently. The little book of behavioral investing book of the. Prior to joining gmo in 2009, he was cohead of global strategy at societe generale. Modern monetary theory mmt seems to provoke a visceral reaction amongst the mind guards of standard economics.
Insights into irrational minds and markets, behavioral investing. Value investing by james montier share book recommendations. This white paper is available with registration at. Darst the little book of bull moves in bear markets by peter d. Feb 26, 2009 book recommendations about viw value investing world is a blog dedicated to promoting the multidisciplinary approach to investing and development of as charlie munger describes it a latticework of mental models. Ive recently finished reading millionaire teacher by andrew hallam and it was a really good read. Smart money tactics for the postrecession era, by janet lowe. Be sure to read right to the end of the document to see the hidden gems james recommended. James montier is an expert in behavioral finance, argues that investors would have a greater chance of spotting the formation of bubbles if they could only brush up on their history and have a greater awareness of human psychology. Dec 10, 2018 ray dalio gives his list of top 20 books that every investor should read, taken from his writings, interviews, and shareholder letters over the years.
Prior to that, he was the cohead of global strategy at societe generale and has been the toprated strategist in the annual thomson extel survey for most of the last decade. This time we are here to talk about your other release the little book of behavioral. A year later, we interviewed james about the seven laws, as applied to the european financial crisis raging at the time. A practitioners guide to applying behavioural finance.
Macro perspective on the capital markets, economy, geopolitics, technology, and digital media. James montier goodreads share book recommendations with. Just say no warning of the risks to investors throwing in the towel on valuation, diversification and active management in favor of a. Behavioral finance, which recognizes that there is a. James montier suggested reading list the big picture. James montiers value investing and ken fishers market never forgets. One of the best books ever written on behavioral investing is the little book of behavioral investing by james montier. Librarything is a cataloging and social networking site for booklovers. The little book of behavioral investing book vancouver. One of my tutors was concerned that i had too much faith in the classical approach of economics, and suggested i read some papers by some of the earliest advocates of the behavioral approach, and i was smitten. Montier shows how the most common psychological barriers such as emotion, overconfidence and a multitude of other behavioral traits, can influence investment decisionmaking. The little book of behavioral investing how not to be your own worst enemy book. Discover book depositorys huge selection of james montier books online.
This book along with black swan, also by nassim nicholas taleb, forces us to look beyond shortterm volatility for what really matters to wealth creation. A dozen things ive learned from james montier about investing september 22, 20. For those fortunate enough to have all the authors pieces from his sg days, this book may not be worth purchasing. The little book of behavioural investing by james montier. In the little book of behavioral investing, expert james montier takes you through some of the most important behavioral challenges faced by investors. By focusing upon process, we maximize our potential to generate good. James montier, a member of gmos asset allocation team, has just published a new white paper the advent of a cynical bubble examining the nature of the bubble we find ourselves in, noting the concept that the us equity market is obscenely overvalued can hardly be news to anyone.
In this white paper, james montier and philip pilkington, both members of gmos asset allocation team, explore the world of secular stagnation, its sources, and its impacts. But trivial details like the critical realism of assumptions never seem to bother the average economist. Montier is employed by gmo an investment firm that earned my respect over 20 years ago and has lectured on behavioral investing. For the causal reader and curious investor, he also put together this. James montier, top ranked investment strategist at in turn dresdner kleinwort, societe generale and gmo, is probably the most important apostle of behavioural finance there is and as such, should be mentioned right beside names such as daniel kahneman, richard thaler or robert shiller. James montier examines classic late cycle behavior and plays foil to market optimists. The book is titled the little book of behavioral investing.
The little book of behavioral investing how not to be your. Book lists, according to grice, became a socgen tradition during former cohead of global strategy james montiers time. James montier has written several books about behavioral finance and how it relates to value investing. How not to be your own worst enemy by james montier is a book that outlines the most frequently encountered psychological pitfalls of investing. May 14, 2012 book recommendations about viw value investing world is a blog dedicated to promoting the multidisciplinary approach to investing and development of as charlie munger describes it a latticework of mental models. Paralysis of empathy gap, fearrisk aversion, overoptimism, authority this could be regarded as a short summary of behavioral economics. Whats on their shelf moi global book recommendations. Like too many other recent books by good financial minds, its just a slapped. The book is indeed just a collection of periodic notes that were sent to clients of j. Behavioural investing seeks to bridge the gap between psychology and investing.
Theres a great passage in the book in which montier emphasises the key lesson that investors can learn from the worlds greatest investors saying. James montier author of the little book of behavioral investing. In this weeks blog post, i will talk about the key takeaways from this little book of behavioral investing. Quotes by james montier success in investing doesnt correlate with iq once youre above the level of 100. Who is cooking the books the cscore via value investing insight. In good times, few focus on such mundane issues as earnings quality and footnotes.
When james montier was hired at, gmo, cofounder and chief strategist jeremy grantham told him to pound the table when he believes things get cheap or any time an opportunity arises. Bogle audiobooks full only 17% of investors can answer all 3 correctly behavioral investing james montier there is a test that is more powerful than any iq test, that measures you resilience against making simple investing. A member of gmos asset allocation team, montier he has used the 35%. A dozen things ive learned from james montier about investing. James montier, often called the enfant terrible of finance for his irreverent approach and critique of the financial orthodoxy, established himself as an authority on the subject with different works such as behavioral finance, behavioral investing, and value investing. Taking the opposite side of the debate, james montier notes that in his experience, mmt provides a much more accurate and insightful framework for understanding the economy than the precepts of neoclassical economics. Tools and techniques for intelligent investment by montier, james isbn. All about the little book of behavioral investing by james montier. Montier reveals the most common psychological barriers, clearly showing how emotion, overconfidence, and a multitude of other behavioral traits, can affect investment decisionmaking.
This book is unique in combining insights from the field of applied psychology with a through. It is a title i would highly recommend to anyone who is just starting out on their journey to better manage their personal finances and get started on investing, as it covers quite a broad range of topics and is also a motivating read which will probably inspire you to read more books websites. The little book of behavioral investing by james montier. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing. He is the author of several books including behavioural investing. In the little book of behavioral investing james montier explains that all investors should devote themselves to understanding the nature of the business and its intrinsic worth, rather than wasting their time trying to guess the unknowable future.
I have wanted to read his books but they were all quite lengthy and i never got around to it. His research identifies enormous vulnerabilities in the economic system, black swans and predictable surprises, zombie firms and other concerns. James montier is an expert in behavioral finance, argues that investors would have a greater chance of spotting the formation of bubbles if they could on. Asset allocation asset allocation by roger gibson all about asset allocation by richard ferri the intelligent asset allocator by william bernstein mastering the art of asset allocation by david darst the fundamental index arnott and hsu index funds hebner the little book of common sense investing john bogle endowment investing unconventional success. 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. A practitioners guide to applying behavioural finance after reading the little book of behavioral investing by james montier, gmo member and author of many great investing books and papers, i thought it was time for something more serious to sharpen my knowledge on the subject. The little book of common sense investing by john c. James montier is a well known expert in behavioral finance. James montiers cima presentation yet another link that i discovered on my friend miguels blog, simoleon sense, which is my favorite blog out there no offense to all the other excellent blogs. In the little book of behavioral investing, expert james montier enlightens the readers about some of the most important behavioral challenges faced by investors. Apr 09, 2010 montier is currently a member of gmos asset allocation team. Insights into irrational minds and markets andread more. This article is the combination of two research reports i found where james recommended the best investment books he. I recommend james montiers latest book the little book of behavioral investing.
Schiff the little book of main street money by jonathan clements the little book of safe money by jason zweig the little book of behavioral investing by james montier. James montier summer 09 reading list investing efficient market. The pair joined societe generale from dresdner kleinwort in december 2007 as coheads of global strategy. Bloomberg opinion when this weeks guest on masters in business, james montier, was hired at gmo uk ltd. In 2011, value investor james montier, a member of gmos asset allocation team, wrote the widely cited piece the seven immutable laws of investing. In june, 2009, he was voted as the best strategist in the thomson reuters extel survey alongside colleague albert edwards. Fisher common stocks and uncommon profits joel greenblatt you can be a stock market genius howard marks. It all started way back, well over twenty years ago when i was at university. The book written by james montier, fund manager at gmo capital, goes through the list of the usual suspects within behavioral economics and makes it relevant in terms of investing. A practitioners guide to applying behavioural finance montier, james on. Insights into irrational minds and market james montier.
Luckily, james montier recently wrote a short book which sums up behavioral finance. James montier author of the little book of behavioral. Montier is the author of three marketleading books, behavioral finance. The advent of a cynical bubble that the us equity market is obscenely overvalued can hardly be news to anyone.