Behavioural Investing: A Practitioner's Guide to Applying Behavioural Finance

The book’s first three sections discuss the origin of common mistakes and their roots in basic biases; the next five sections discuss behavioural phenomena. In this review, I follow the same progression; a review of mistakes and biases, followed by a discussion of a number of the behavioural phenomena which I think are potentially of great interest to Brandes constituents. These include: group decision making, fallacies of modern finance, the nature and predictability of bubbles, and an important area of behaviour – happiness – or what motivates people (correctly or otherwise).