PART I: WHAT IS BEHAVIORAL FINANCE ; PART II: PREDICTION ; PART III: INDIVIDUAL INVESTORS ; PART IV: INSTITUTIONAL INVESTORS ; PART V: THE INTERFACE BETWEEN CORPORATE FINANCE AND INVESTMENT ; PART VI: OPTIONS, FUTURES, AND FOREIGN EXCHANGE
Hersh Shefrin holds the Mario L. Belotti Chair in Finance at the Leavey School of Business, Santa Clara University.
Behavioral finance is defined by Shefrin (finance, Santa Clara Univ.) as "a rapidly growing area that deals with the influence of psychology on the behavior of financial practitioners." This comprehensive study is aimed primarily at practitionersÄportfolio managers, analysts, and financial advisersÄwho, according to Shefrin, "need to know that because of human nature, they make particular types of mistakes." Shefrin provides a historical background of finance theory, studies of behavioral analysis, and a review of major contributions to the literature. The book is divided into six parts: behavioral finance, the stock market, individual investors, money managers, corporate executives, and options, futures, and foreign exchange. In addition to numerous case studies, Shefrin utilizes statistical charts and tables to illustrate his central theories and concepts. Important and thought-provoking, this study is recommended for academic faculty and students as well as finance practitioners.ÄLucy T. Heckman, St. John's Univ. Lib., NY Copyright 1999 Cahners Business Information.
This refreshingly iconoclastic book awakens us all to how little we know about financial markets, and how much we have to discover. I particularly enjoyed the reference to the emperor's clothes worn by the mutual fund industry. Shefrin's clear reaffirmation of the fallibility of professional investors will lead even the most impressionable of investors to consider, yet again, the advantages of market indexing strategies.-John Bogle, Founder and Senior Chairman, The Vanguard Group, and author, Common Sense on Mutual Funds
This book helps readers recognize, and avoid, bias and errors in their financial decisions, and modify and, it is hoped, improve their overall investment strategies. * JP Morgan Private Bank Annual Summer Reading List. *
Behavioral finance is about normal people and the markets that drive them crazy. Shefrin's insights into these people and markets will provide you with solutions to many financial puzzles-as you read the book and long after you close it.-Meir Statman, Glenn Klimek Professor of Finance, Leavey School of Business, Santa Clara University
Beyond Greed and Fear challenges your most fundamental assumptions about investing and uncovers psychological traps that may prevent you from achieving higher returns on your portfolio.-Martin S. Fridson, Managing Director, Merrill Lynch & Co., and author, How to Be a Billionaire
Shefrin synthesizes a wealth of research and observations about human behavior and financial anomalies into a broad and deep perspective on financial markets. No other book so splendidly lays out the fundamentals of behavioral finance.-Robert Shiller, Stanley B. Resor Professor of Economics, Cowles Foundation for Research in Economics, Yale University
Beyond Greed and Fear is the first truly comprehensive behavioral finance book written for practitioners. It should be required reading for portfolio managers and traders.-W. Van Harlow III, President and CIO, Strategic Advisors, Fidelity Investments
Most books about financial markets overlook the human element-a serious omission since people matter on Wall Street as well as on Main Street. Beyond Greed and Fear is a fine examination of the budding field of behavioral finance. I recommend it to anyone who intends to trade with other human beings, or who is a human being.-Richard H. Thaler, Robert P. Gwinn Professor of Behavioral Science and Economics, Graduate School of Business, University of Chicago
Financial practitioners, argues the author, must acknowledege and understand behavioral finance in order to avoid many of the investment pitfalls caused by human error.-Business Horizons
One edition of this work should be in every investment collection-CHOICE, H. Mayo