Five Laws about Investing Bias and True Happiness by James Montier
I never met or heard of James Montier when I worked in London but he seems like a financial strategist after my own heart. Read this Fast Company Magazine clip about him and his five laws.
Link to to article by him on Abu Graves and Behavioral Finance.
http://turtletrader.com/james-montier.html
I'll be watching this guy.
Those were great articles. It's interesting to be reminded of the choices people make depending on the circumstances. People are so quick to make decisions based upon a fairly small amount of information or just because someone "said so". I have been guilty of turning my financial advisor loose because it is what he does and I don't want to fool with it. I consider him to be the expert in his field and I'm relying on that quite heavily. Of course we have a long standing relationship which is why I trust him with my moola. Now all that being said, enjoying the simple pleasures in life is super important. While having the financial resources to make purchases and do things is nice, it's the experiences along the way and the day to day stuff that makes life interesting and fulfilling. Don't forget to smell the flowers and soak in a few sunsets here and there.
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I've been facinated by the area of behavioral biases and finance, and after reading tons of material, have concluded that you really ought to switch off the TV, ignore the media, and come up with a reasonable process in your investing. The talking heads spew absolute garbage with no accountability. They sound reasonable, until you think about what they are saying and spot check their records. I've found that my returns on investing went up after I decided not to herd with the crowd. Think for yourself, and invest like spock.
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