This is an old presentation, but is even more applicable today than it was in 2004 when T2 originally presented it. Regular readers know that I am a closet psychologist. Understanding psychology and controlling the natural survival instincts inside each of us is one of the most important factors leading to investment success. This presentation nicely summarizes the application of behavioral finance.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
You’re the man..this is great stuff. Behavioral Finance was one of the few areas of economics that Soros lent credence to. I keep going off about reflexivity but it’s so so relevant to what’s happening right now…especially with JPM, C, and BAC on deck..
It’s so understated in investing circles. Controlling your own emotions and understanding the tendencies of others is so vital. over the years I’ve learned to become almost robotic in the way I invest (although there is the occasional chair throwing incident here and there). I’m glad Im not the only turbo nerd who enjoys this sort of stuff….
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