Behavioral Finance and Wealth Management (eBook)

How to Build Investment Strategies That Account for Investor Biases

Michael M. Pompian (Autor)

eBook Download: EPUB

2011 | 2. Auflage
352 Seiten
John Wiley & Sons (Verlag)
978-1-118-18229-1 (ISBN)

Infos

The book that applies behavioral finance to the real world

Understanding how to use behavioral finance theory in investing
is a hot topic these days. Nobel laureate Daniel Kahneman has
described financial advising as a prescriptive activity whose main
objective should be to guide investors to make decisions that serve
their best interests. The reality? That's easier said than done. In
the Second Edition of Behavioral Finance and Wealth
Management, Michael Pompian takes a practical approach to the
growing science of behavioral finance, and puts it to use for real
investors. He applies knowledge of 20 of the most prominent
individual investor biases into "behaviorally-modified" asset
allocation decisions. Offering investors and financial advisors a
"self-help" book, Pompian shows how to create investment strategies
that leverage the latest cutting edge research into behavioral
biases of individual investors. This book:

* Shows investors and financial advisors how to either moderate
or adapt to behavioral biases, in order to improve investment
results and identifies "the best practical allocation" for
investment portfolios. Using these two sound approaches for guiding
investment decision-making, behavioral biases are incorporated into
the portfolio management process

* Uses updated cases studies to show investors and financial
advisors how an investor's behavior can be modified to improve
investment decision-making

* Provides useable methods for creating behaviorally modified
investment portfolios, which may help investors to reach their long
term financial goals

* Heightens awareness of biases so that financial decisions and
resulting economic outcomes are improved

* Offers advice on managing the effects of each bias in order to
improve investment results

This Second Edition illustrates investors' behavioral
biases in detail and offers financial advisors and their clients
practical advice about how to apply the science of behavioral
finance to improve overall investment decision making.

Autor

MICHAEL M. POMPIAN, CFA, CFP, is a partner at Mercer Investment Consulting, a firm serving institutional and private wealth clients. Prior to joining Mercer, he was a wealth management advisor with Merrill Lynch and PNC Private Bank, and served on the investment staff of a family office. Pompian is a Chartered Financial Analyst (CFA), a Certified Financial Planner (CFP), and a Certified Trust Financial Advisor (CTFA). He is also a member of the CFA Institute (formerly AIMR) and the New York Society of Security Analysts (NYSSA). He holds a BS in management from the University of New Hampshire and an MBA in finance from Tulane University. Pompian is a regular speaker on the subject of behavioral finance and has published several articles on the subject. He is married with three sons and can be reached at [e-mail].

Produkt-Details

• Erscheint lt. Verlag: 29.11.2011
• Reihe/Serie: Wiley Finance Editions
• Reihe/Serie: Wiley Finance Editions
• Sprache: englisch
• Themenwelt: Recht / Steuern ► Wirtschaftsrecht
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Schlagworte: Finance & Investments • Finanz- u. Anlagewesen • Investments & Securities • Kapitalanlage • Kapitalanlagen u. Wertpapiere
• ISBN-10: 1-118-18229-4 / 1118182294
• ISBN-13: 978-1-118-18229-1 / 9781118182291