Tue, November 09, 2010
Meir Statman Virtual Book Tour: Coming to the FFS Blog
Generally, I’ve written all the posts for this blog myself. I’m making an exception to that practice this month, because I’ve had a rare opportunity to feature a post from an expert in the field of behavioral finance.
Meir Statman, professor of finance at Santa Clara University, has done considerable research seeking to understand how investors make financial decisions. Although economists often assume that investors behave purely rationally, behavioral finance recognizes that there are ways in which investors are prone to make mistakes. Investors who understand the errors that they’re likely to make – like investing emotionally instead of rationally – are equipped to make better decisions and fewer mistakes.
Statman has just published a book, “What Investors Really Want: Discover What Drives Investor Behavior and Make Smarter Financial Decisions,” in which he seeks to combine behavioral finance insights with real-life financial concerns. McGraw-Hill just sent me a review copy, so I hope to be able to read and review the book before the end of the year.
On November 30th, Professor Statman will write an exclusive behavioral finance article here on the FFS Blog as part of his “tour” through the finance and investing blogosphere.